Aetna (NYSE: AET) announced two senior-level leadership
appointments to strengthen the company’s ability to help lead the
transformation of the health care industry to a new and better
model – one in which insurers, doctors and hospitals work together
to give people as many healthy days as possible.
Gary Loveman, Ph.D., is joining Aetna as executive vice
president, and president of a newly expanded Healthagen® health
services organization, which now will include Aetna’s Consumer
Business. Healthagen will now integrate the company’s population
health, clinical care management and consumer insight capabilities
to create a simpler, more affordable end-to-end consumer
experience.
Rick Jelinek is joining Aetna as executive vice president
responsible for the Aetna-Humana integration, as well as Aetna’s
enterprise strategy. In July 2015, Aetna announced plans to acquire
Humana Inc. for $37 billion, a combination that will accelerate the
company’s strategic focus on value-based, consumer-centric care and
enable the company to better compete with more cost-effective
products.
Both Loveman and Jelinek will report to Aetna’s Chairman and CEO
Mark T. Bertolini, and both will join Aetna’s Executive Committee,
the company’s senior-most leadership team.
“I am delighted to welcome Gary and Rick to Aetna at an
exciting, important time for our company,” said Bertolini. “Their
leadership and expertise will help us to take full advantage of the
many opportunities before us as we pursue our mission of building a
healthier world.”
Joseph M. Zubretsky, senior executive vice president,
Healthagen, has announced he is leaving Aetna after nearly nine
years with the company. Most recently, Zubretsky played a pivotal
role in establishing Healthagen as a leading provider-centric
organization that is helping to drive the shift to value-based
care. His Aetna career also includes two years as head of the
company’s National Businesses unit and six years as its chief
financial officer.
“I’m very grateful to Joe for his many significant contributions
to Aetna’s success, and I wish him well in his future endeavors,”
said Bertolini.
Gary Loveman, Ph.D.
Prior to joining Aetna, Loveman served as chairman, CEO and
president of Caesars Entertainment Corporation. During his tenure
with Caesars, he oversaw a period of growth that included several
major acquisitions, as well as the utilization of cutting-edge
technologies to deliver unsurpassed customer service and consumer
experiences. Loveman also developed Wellness Rewards, Caesars’
widely recognized, incentive-based health and wellness program for
the company’s 70,000 employees and their families. For the past
three years, he has chaired the Business Roundtable’s Health &
Retirement Committee, which focuses on improving the quality and
affordability of the nation’s health and retirement systems. He
serves on the Board of Trustees at Children’s Hospital Boston and
on the Visiting Committee of the M.I.T. Department of Economics,
and is also a member of the Board of Directors of FedEx
Corporation. Earlier in his career, Gary was an associate professor
at the Harvard University Graduate School of Business
Administration, where he taught service management. He holds a
Ph.D. in economics from M.I.T., where he was an Alfred Sloan
Doctoral Dissertation Fellow, and a bachelor’s degree in economics
from Wesleyan University.
“I’m excited to join Aetna, a company that is at the forefront
of helping to drive much-needed change in our health care system,”
said Loveman. “I look forward to working with Mark and the Aetna
team to find innovative, technology-enabled new ways to partner
with physicians, providers, and consumers – all in service of
delivering better, simpler care to more people at a lower
cost.”
Rick Jelinek
Prior to joining Aetna, Jelinek was an operating partner at
Advent International, one of the world’s leading private equity
firms with investments totaling $28 billion across 40 countries.
Previously, he served as CEO of OptumHealth, part of the
UnitedHealth Group. His tenure at UnitedHealth spanned 19 years,
during which he oversaw several divisions as CEO and served as an
executive vice president of the corporation. His divisional CEO
responsibilities included the company’s Medicare Advantage
business, its Medicaid and children’s health insurance businesses,
and the company’s Emerging Businesses Group. While at Optum,
Jelinek oversaw the company’s care delivery, population health
management, and consumer programs businesses. He joined
UnitedHealth through a predecessor organization, Lifemark
Corporation. He holds an MBA and master’s degree in health services
administration from the University of Michigan., as well as
bachelor’s degree in business administration from the University of
Southern California.
“I’m pleased to join Aetna as the company prepares to nearly
double in size through the planned acquisition of Humana,” said
Jelinek. “The combined company will be able to offer more consumers
a broader choice of products, access to higher quality and more
affordable care, and a better overall experience in more geographic
locations across the country.”
About Aetna
Aetna is one of the nation's leading diversified health care
benefits companies, serving an estimated 46.7 million people with
information and resources to help them make better informed
decisions about their health care. Aetna offers a broad range of
traditional, voluntary and consumer-directed health insurance
products and related services, including medical, pharmacy, dental,
behavioral health, group life and disability plans, and medical
management capabilities, Medicaid health care management services,
workers' compensation administrative services and health
information technology products and services. Aetna's customers
include employer groups, individuals, college students, part-time
and hourly workers, health plans, health care providers,
governmental units, government-sponsored plans, labor groups and
expatriates. For more information, see www.aetna.com and learn
about how Aetna is helping to build a healthier world.
@AetnaNews
Important Information For Investors And Stockholders
This communication does not constitute an offer to sell or the
solicitation of an offer to buy any securities or a solicitation of
any vote or approval. In connection with the proposed transaction
between Aetna Inc. (“Aetna”) and Humana Inc. (“Humana”), Aetna has
filed with the Securities and Exchange Commission (the “SEC”) a
registration statement on Form S-4, including Amendment No. 1
thereto, containing a joint proxy statement of Aetna and Humana
that also constitutes a prospectus of Aetna. The registration
statement was declared effective by the SEC on August 28, 2015, and
Aetna and Humana commenced mailing the definitive joint proxy
statement/prospectus to shareholders of Aetna and stockholders of
Humana on or about September 1, 2015. INVESTORS AND SECURITY
HOLDERS OF AETNA AND HUMANA ARE URGED TO READ THE DEFINITIVE JOINT
PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS FILED OR THAT WILL
BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY
CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION. Investors and
security holders may obtain free copies of the registration
statement and the definitive joint proxy statement/prospectus and
other documents filed with the SEC by Aetna or Humana through the
website maintained by the SEC at http://www.sec.gov. Copies of the
documents filed with the SEC by Aetna are available free of charge
on Aetna’s internet website at http://www.Aetna.com or by
contacting Aetna’s Investor Relations Department at 860-273-2402.
Copies of the documents filed with the SEC by Humana are available
free of charge on Humana’s internet website at
http://www.Humana.com or by contacting Humana’s Investor Relations
Department at 502-580-3622.
Aetna, Humana, their respective directors and certain of their
respective executive officers may be considered participants in the
solicitation of proxies in connection with the proposed
transaction. Information about the directors and executive officers
of Humana is set forth in its Annual Report on Form 10-K for the
year ended December 31, 2014, which was filed with the SEC on
February 18, 2015, its proxy statement for its 2015 annual meeting
of stockholders, which was filed with the SEC on March 6, 2015, and
its Current Report on Form 8-K, which was filed with the SEC on
April 17, 2015. Information about the directors and executive
officers of Aetna is set forth in its Annual Report on Form 10-K
for the year ended December 31, 2014 (“Aetna’s Annual Report”),
which was filed with the SEC on February 27, 2015, its proxy
statement for its 2015 annual meeting of shareholders, which was
filed with the SEC on April 3, 2015 and its Current Reports on Form
8-K, which were filed with the SEC on May 19, 2015, May 26, 2015
and July 2, 2015. Other information regarding the participants in
the proxy solicitations and a description of their direct and
indirect interests, by security holdings or otherwise, are
contained in the definitive joint proxy statement/prospectus of
Aetna and Humana filed with the SEC and other relevant materials to
be filed with the SEC when they become available.
Cautionary Statement Regarding Forward-Looking
Statements
This communication contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. You can generally identify forward-looking statements by
the use of forward-looking terminology such as “anticipate,”
“believe,” “continue,” “could,” “estimate,” “expect,” “explore,”
“evaluate,” “intend,” “may,” “might,” “plan,” “potential,”
“predict,” “project,” “seek,” “should,” or “will,” or the negative
thereof or other variations thereon or comparable terminology.
These forward-looking statements are only predictions and involve
known and unknown risks and uncertainties, many of which are beyond
Aetna’s and Humana’s control. Statements in this communication
regarding Aetna that are forward-looking, including Aetna’s
projections as to the anticipated benefits of the pending
transaction to Aetna, the impact of the appointments of Messrs.
Loveman and Jelinek on Aetna’s ability to help lead the
transformation of the health care industry and take advantage of
the business opportunities available to Aetna and Aetna’s ability
to create a simpler, more affordable end-to-end consumer
experience, are based on management’s estimates, assumptions and
projections, and are subject to significant uncertainties and other
factors, many of which are beyond Aetna’s control. Important risk
factors could cause actual future results and other future events
to differ materially from those currently estimated by management,
including, but not limited to: the timing to consummate the
proposed acquisition; the risk that a condition to closing of the
proposed acquisition may not be satisfied; the risk that a
regulatory approval that may be required for the proposed
acquisition is delayed, is not obtained or is obtained subject to
conditions that are not anticipated; Aetna’s ability to achieve the
synergies and value creation contemplated by the proposed
acquisition; Aetna’s ability to promptly and effectively integrate
Humana’s businesses; the diversion of management time on
acquisition-related issues; unanticipated increases in medical
costs (including increased intensity or medical utilization as a
result of flu or otherwise; changes in membership mix to higher
cost or lower-premium products or membership-adverse selection;
medical cost increases resulting from unfavorable changes in
contracting or re-contracting with providers (including as a result
of provider consolidation and/or integration); and increased
pharmacy costs (including in Aetna’s health insurance exchange
products)); the profitability of Aetna’s public health insurance
exchange products, where membership is higher than Aetna projected
and may have more adverse health status and/or higher medical
benefit utilization than Aetna projected; uncertainty related to
Aetna’s accruals for health care reform's reinsurance, risk
adjustment and risk corridor programs (“3R’s”); the implementation
of health care reform legislation, including collection of health
care reform fees, assessments and taxes through increased premiums;
adverse legislative, regulatory and/or judicial changes to or
interpretations of existing health care reform legislation and/or
regulations (including those relating to minimum MLR rebates); the
implementation of health insurance exchanges; Aetna’s ability to
offset Medicare Advantage and PDP rate pressures; and changes in
Aetna’s future cash requirements, capital requirements, results of
operations, financial condition and/or cash flows. Health care
reform will continue to significantly impact Aetna’s business
operations and financial results, including Aetna’s pricing and
medical benefit ratios. Key components of the legislation will
continue to be phased in through 2018, and Aetna will be required
to dedicate material resources and incur material expenses during
2015 to implement health care reform. Certain significant parts of
the legislation, including aspects of public health insurance
exchanges, Medicaid expansion, reinsurance, risk corridor and risk
adjustment and the implementation of Medicare Advantage and Part D
minimum medical loss ratios (“MLRs”), require further guidance and
clarification at the federal level and/or in the form of
regulations and actions by state legislatures to implement the law.
In addition, pending efforts in the U.S. Congress to amend or
restrict funding for various aspects of health care reform, and
litigation challenging aspects of the law continue to create
additional uncertainty about the ultimate impact of health care
reform. As a result, many of the impacts of health care reform will
not be known for the next several years. Other important risk
factors include: adverse changes in health care reform and/or other
federal or state government policies or regulations as a result of
health care reform or otherwise (including legislative, judicial or
regulatory measures that would affect Aetna’s business model,
restrict funding for or amend various aspects of health care
reform, limit Aetna’s ability to price for the risk it assumes
and/or reflect reasonable costs or profits in its pricing, such as
mandated minimum medical benefit ratios, or eliminate or reduce
ERISA pre-emption of state laws (increasing Aetna’s potential
litigation exposure)); adverse and less predictable economic
conditions in the U.S. and abroad (including unanticipated levels
of, or increases in the rate of, unemployment); reputational or
financial issues arising from Aetna’s social media activities, data
security breaches, other cybersecurity risks or other causes;
Aetna’s ability to diversify Aetna’s sources of revenue and
earnings (including by creating a consumer business and expanding
Aetna’s foreign operations), transform Aetna’s business model,
develop new products and optimize Aetna’s business platforms; the
success of Aetna’s Healthagen® (including Accountable Care
Solutions and health information technology) initiatives; adverse
changes in size, product or geographic mix or medical cost
experience of membership; managing executive succession and key
talent retention, recruitment and development; failure to achieve
and/or delays in achieving desired rate increases and/or profitable
membership growth due to regulatory review or other regulatory
restrictions, the difficult economy and/or significant competition,
especially in key geographic areas where membership is
concentrated, including successful protests of business awarded to
Aetna; failure to adequately implement health care reform; the
outcome of various litigation and regulatory matters, including
audits, challenges to Aetna’s minimum MLR rebate methodology and/or
reports, guaranty fund assessments, intellectual property
litigation and litigation concerning, and ongoing reviews by
various regulatory authorities of, certain of Aetna’s payment
practices with respect to out-of-network providers and/or life
insurance policies; Aetna’s ability to integrate, simplify, and
enhance Aetna’s existing products, processes and information
technology systems and platforms to keep pace with changing
customer and regulatory needs; Aetna’s ability to successfully
integrate Aetna’s businesses (including Humana, Coventry, bswift
LLC and other businesses Aetna may acquire in the future) and
implement multiple strategic and operational initiatives
simultaneously; Aetna’s ability to manage health care and other
benefit costs; adverse program, pricing, funding or audit actions
by federal or state government payors, including as a result of
sequestration and/or curtailment or elimination of the Centers for
Medicare & Medicaid Services’ star rating bonus payments;
Aetna’s ability to reduce administrative expenses while maintaining
targeted levels of service and operating performance; failure by a
service provider to meet its obligations to us; Aetna’s ability to
develop and maintain relationships (including collaborative
risk-sharing agreements) with providers while taking actions to
reduce medical costs and/or expand the services Aetna offers;
Aetna’s ability to demonstrate that Aetna’s products and processes
lead to access to quality affordable care by Aetna’s members;
Aetna’s ability to maintain Aetna’s relationships with third-party
brokers, consultants and agents who sell Aetna’s products;
increases in medical costs or Group Insurance claims resulting from
any epidemics, acts of terrorism or other extreme events; changes
in medical cost estimates due to the necessary extensive judgment
that is used in the medical cost estimation process, the
considerable variability inherent in such estimates, and the
sensitivity of such estimates to changes in medical claims payment
patterns and changes in medical cost trends; a downgrade in Aetna’s
financial ratings; and adverse impacts from any failure to raise
the U.S. Federal government's debt ceiling or any sustained U.S.
Federal government shut down. For more discussion of important risk
factors that may materially affect Aetna, please see the risk
factors contained in Aetna’s 2014 Annual Report on Form 10-K
(“Aetna’s 2014 Annual Report”) on file with the Securities and
Exchange Commission (“SEC”). You should also read Aetna’s 2014
Annual Report and Aetna’s Quarterly Report on Form 10-Q for the
quarter ended June 30, 2015, on file with the SEC, for a discussion
of Aetna’s historical results of operations and financial
condition.
No assurances can be given that any of the events anticipated by
the forward-looking statements will transpire or occur, or if any
of them do occur, what impact they will have on the results of
operations, financial condition or cash flows of Aetna or Humana.
Neither Aetna nor Humana assumes any duty to update or revise
forward-looking statements, whether as a result of new information,
future events or otherwise, as of any future date.
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version on businesswire.com: http://www.businesswire.com/news/home/20150930005883/en/
AetnaMedia Contact:Cynthia Michener,
860-273-8553michenerc@aetna.comorInvestor Contact:Tom
Cowhey, 860-273-2402cowheyt@aetna.com
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