Aetna

Aetna

Aetna Inc. is a large American company that helps people get health care. It sells many kinds of insurance and services, such as medical and dental care, mostly for people who get their insurance through their jobs. Since 2018, Aetna has been part of a bigger company called CVS Health.

Aetna has a large network of health care. It includes many people for medical and dental care, along with many doctors and hospitals.

The company began from an old insurance business in Hartford, Connecticut. It got its name from Mount Etna, a volcano in Europe.

Timeline

1800s

• 1819: Thomas Kimberly Brace started the Aetna (Fire) Insurance Company in Hartford. He was its first leader and stayed on the board until he died in 1860. Henry Leavitt Ellsworth, a Yale graduate and attorney, became the next leader. He later became the first U.S. Patent Commissioner and served as leader until 1821.
• 1820: Brace changed the company rules to allow them to offer life insurance and annuities.
• 1853: The Annuity department became a separate company called Aetna Life Insurance Company, with Eliphalet Bulkeley as leader.
• 1854: Aetna hired its first full-time employee, Thomas O. Enders, who later became leader.
• 1857: Aetna moved to new offices in Hartford. Many businesses closed during the Panic of 1857, but Eliphalet Bulkeley helped protect Aetna.
• During the 1850s, Aetna issued life insurance policies for African-American slaves.
• 1861: Aetna began offering life insurance policies that paid dividends to policyholders.
• 1864: By this year, Aetna's business had grown a lot since 1861, and its yearly income exceeded one million dollars.
• 1865: Aetna met the strict rules in Massachusetts and New York and started offering policies there.
• 1867: Aetna's income grew from $78,000 in 1861 to $5.129 million.
• 1868: Aetna changed its practices, hiring its first actuary and switching to an all-cash premium plan.
• 1872: Eliphalet A. Bulkeley died, and Thomas O. Enders became leader.
• 1878: Aetna increased its capital from $150,000 to $750,000.
• 1879: Enders stepped down as leader, and Morgan G. Bulkeley, Eliphalet Bulkeley's son, took over.
• 1888: Aetna bought its fourth home office at 650 Main Street, the first building they owned.
• 1891: Aetna issued its first accident policy to Morgan Bulkeley.
• 1892: Aetna held its first general agents conference in Chicago.
• 1899: Aetna began offering health insurance policies.

1900s

• 1902: Aetna created an Accident and Liability department to offer employers' liability and workers' insurance.
• 1903: Aetna created an Engineering and Inspection Division to improve workplace safety.
• 1904: Aetna introduced its first corporate seal.
• 1907: Aetna began offering automobile insurance.
• 1908: Aetna hired its first female employee, Julia Kinghorn, a telephone switchboard operator.
• 1910: Aetna began using Hollerith punched card machines for recording data and hired women to input mortality statistics.
• 1911: Aetna started its first national advertising campaign and formed a bond department.
• 1912: Aetna introduced the first combination automobile policy. Some Aetna customers were on the RMS Titanic when it sank.
• 1913: Aetna formed the Automobile Insurance Company and a Group department to sell group life insurance.
• 1917: Aetna changed its name to Aetna Casualty and Surety Co.
• 1924: Aetna had invested $94 million, 43% of its assets, in farm mortgages. That year, it acquired The Standard Fire Insurance Co.
• 1960: Aetna expanded outside the U.S. by buying a Canadian company, Excelsior Life Insurance Company.
• 1968: Aetna bought a majority interest in a company in Sydney, Australia. Aetna's stock began trading on the NYSE.
• 1970: Aetna's Pension, Casualty and Life Division grew significantly in the pension administration area.
• 1981: Aetna bought interests in companies in Chile and invested in ventures in England, Spain, Hong Kong, Taiwan, Indonesia, and Korea.
• 1996: Aetna sold its property and casualty subsidiary and acquired U.S. Healthcare, changing its name to Aetna Inc.
• 1998: Aetna bought NYLCare Health Plans for $1.05 billion, adding 2.2 million members.
• 1999: Aetna bought Prudential HealthCare for $1 billion, becoming the largest health benefits provider in the U.S. with over 21 million members.

2000s

• 2000: John Rowe became CEO and cut over 10,000 jobs. He raised insurance premiums and focused on more profitable accounts.
• 2001: Aetna hired Roy Clason Jr. to help improve its public image.
• 2002: Rowe reduced Aetna's customer base from 19 million to 13 million by leaving unprofitable markets.
• 2006: John Rowe stepped down as CEO.
• 2007: Aetna acquired Schaller Anderson to enter the Medicaid and State Children's Health Insurance Program market.
• 2008: Aetna's CEO received $38.12 million in pay. Aetna began offering pet health insurance.
• 2009: Over 200 people protested in front of Aetna's Hartford headquarters for a public health insurance option. Aetna announced layoffs of 625 employees and planned to raise prices and drop coverage for 600,000 to 650,000 customers.

2010s

• 2010: Aetna and Continuum Health Partners resolved a contract dispute affecting New York hospitals.
• 2011: Aetna acquired Prodigy Health Group, parent of Meritain Health.
• 2012: Aetna introduced a new logo and formed a joint venture with Inova Health System to create Innovation Health.
• 2013: Aetna acquired Coventry Health Care for $5.7 billion.
• 2015: Aetna announced plans to acquire Humana for $37 billion.
• 2014-2017: Aetna rebranded its Medicaid providers as Aetna Better Health.
• 2017: A court blocked Aetna's merger with Humana, and the companies ended the agreement. Aetna and Banner Health formed a joint venture called Banner|Aetna. Aetna planned to move its headquarters to New York City but stayed in Hartford after CVS announced its acquisition.
• 2017: CVS Health announced it would acquire Aetna for $69 billion. Aetna's CEO resigned, and Karen S. Lynch took over Aetna operations.
• 2018: CVS Health completed the acquisition of Aetna on November 28.

2020s

• 2020: Karen Lynch was named CEO of CVS.
• 2021: Lynch announced that Aetna would start offering individual plans through ACA exchanges in 2022.

Lawsuits and regulatory action

From 1999 to 2021, Aetna had many legal problems and fines from different states and groups. These problems were about delays in approving medical treatments, late payments to doctors and hospitals, and not following state rules for health insurance.

One example is a case in California where a jury gave a large award because Aetna delayed treatment for a patient's stomach cancer. In Texas, Aetna was fined for late payments to doctors. Other cases were about Aetna not covering some services or not following claim rules. These legal actions made Aetna change how they handle health care services and payments.

Life insurance policies on slaves

In the mid-1800s, Aetna issued life insurance policies to people who owned slaves. This was wrong, and in 2000, Aetna said they were sorry for doing this.

A woman named Deadria Farmer-Paellmann asked Aetna and two other companies to help the descendants of slaves. She said these companies got rich by using slaves and that this still affects many people today. But the court did not agree with her request.

Aetna said that instead of paying for the past, they are working to help everyone by supporting education, health, and other important programs in communities where many African-Americans live.

Lobbying and campaign contributions

Aetna spent a lot of money on lobbying in 2009. They also gave money to help elect some leaders. For example, they gave over $110,000 to US Senator Joe Lieberman in 2009. Some people thought this may have influenced his views on health care laws. Aetna also gave money to Senator Max Baucus, who helped make health care decisions.