Aetna Announces Intent to Become National Provider of Medicare Prescri

    Business Editors/Health/Medical Writers

    HARTFORD, Conn.--(BUSINESS WIRE)--Feb. 23, 2005--Aetna (NYSE:AET) announced today that its growing pharmacy benefit management unit would take a leadership role in Medicare's historic new Part D prescription drug program in 2006, and it intends to offer plans for both individuals and employers in every state. Participating in this program would strengthen Aetna's leadership in this area, adding the individual and group prescription drug plans to its already extensive offerings for Medicare beneficiaries.
    The company filed a letter of intent last week with the Centers for Medicare & Medicaid Services (CMS) to become a national provider of the new Medicare prescription drug plan. The CMS-approved plans will take effect January 1, 2006. Companies must file initial applications with CMS by March 23, 2005, and qualified applicants will be required to submit plan bids by June 6, 2005. CMS expects to award contracts by early September.
    "The new plans would provide Medicare beneficiaries an unprecedented level of support for their prescription drug expenses," said Eric Elliott, president of Aetna Pharmacy Management. "Aetna offers Medicare-eligible individuals more than just administration of prescription drug benefits. We provide a full-service pharmacy benefit management service that includes access to a nationwide network of retail pharmacies, our own mail-order pharmacy, integrated programs to promote patient safety, and a new Aetna specialty pharmacy network to serve the chronically ill."
    The new Medicare prescription drug plans are part of Aetna's continuing commitment to offering Medicare beneficiaries and other retirees a broad portfolio of health benefits solutions. Aetna was a pioneer in the Medicare program, making the nation's first Medicare claim payment in 1966. Aetna today offers benefits to Medicare-eligible individuals through its Medicare Advantage HMO and "open access" plans, Medicare supplement plans and employer-sponsored retiree plans.
    The prescription drug plans would be available whether beneficiaries enroll in an Aetna Medicare Advantage plan or a Medicare supplement plan, or choose to remain with Original Medicare for their medical coverage. The plans will replace the discount prescription drug card introduced by Medicare last year as a temporary program until the plans are in place.
    The Aetna plans also will offer employers fully insured options in providing prescription drug benefits for their retirees.
    "We are fully attuned to the needs of retirees in all of our health plans, with services and programs designed with Medicare beneficiaries in mind," said Frank McCauley, head of Aetna's Medicare business segment. "We are taking a leading role in providing superior access to information, products and services to meet the health care needs of this important population."
    Aetna has been actively expanding participation in the Medicare Advantage program over the past few years, offering new benefit alternatives such as the Aetna Golden Choice(TM) Plan (part of the Medicare PPO demonstration project), Medicare supplements, and enhancing benefits in its existing Aetna Golden Medicare Plan(R) (HMO).
    As one of the nation's leading providers of health care, dental, pharmacy, group life, disability and long-term care benefits, Aetna puts information and helpful resources to work for its approximately 13.7 million medical members, 11.9 million dental members, 8.4 million pharmacy members and 13.5 million group insurance members to help them make better informed decisions about their health care and protect their finances against health-related risks. Aetna provides easy access to cost-effective health care through a nationwide network of more than 655,000 health care professionals, including over 390,000 primary care and specialist doctors and 3,937 hospitals. For more information, please visit www.aetna.com. (Figures as of December 31, 2004)
    ADDITIONAL INFORMATION; CAUTIONARY STATEMENT - The information in this press release relating to Aetna's participation in the new Medicare Part D prescription drug program is forward looking. Forward-looking information is based on management's estimates, assumptions and projections, and is 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. Those risk factors include, but are not limited to, CMS not awarding Aetna a contract under the new Medicare prescription drug program. For more discussion of important risk factors that may materially affect Aetna, please see the risk factors contained in Aetna's 2003 Annual Report on Form 10-K, on file with the Securities and Exchange Commission. You also should read Aetna's 2004 Annual Report on Form 10-K when filed with the Securities and Exchange Commission for a discussion of Aetna's historical results of operations and financial condition.

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CONTACT: Aetna Katherine Lee, 860-273-2707, LeeK2@aetna.com Jon Sandberg, 860-273-8145, sandbergj@aetna.com

KEYWORD: CONNECTICUT INDUSTRY KEYWORD: PHARMACEUTICAL MEDICAL BIOTECHNOLOGY PRODUCT SOURCE: Aetna

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