Aetna Inc. Acquires Prudential HealthCare for $1 Billion

Strategic Insights -

Aetna Inc., the nation's largest health insurer, has agreed to buy Prudential HealthCare for $1 billion, significantly expanding its membership in key states and solidifying its position as a dominant player in the managed care industry. The acquisition adds approximately 6.6 million members to Aetna U.S. Healthcare, giving it second place in the region's enrollment rankings, and total enrollment of 22.4 million nationwide. The purchase also strengthens Aetna's presence in managed care plans, with 18.4 million members after completing its acquisition of health units owned by Prudential Insurance Co. of America.

Key Takeaways:

  • Aetna Inc. has agreed to acquire Prudential HealthCare for $1 billion, expanding its membership in Virginia, Maryland, and seven other key states.
  • The acquisition adds approximately 6.6 million members to Aetna U.S. Healthcare, giving it second place in the region's enrollment rankings, and total enrollment of 22.4 million nationwide.
  • The purchase doubles Aetna's dental managed care membership to over 15 million, making it the nation's largest provider of dental care benefits.
  • Analysts say the Prudential deal will make Aetna a stronger competitor throughout the region and better able to offer across-the-board managed care services.
  • Aetna remains behind Blue Cross plans in several important markets, but the acquisition will position it as a leader in health care.
  • The Prudential acquisition would put Aetna among the top three managed care companies in nine states, including Texas, New York, New Jersey, Pennsylvania, and Ohio.

Statistics:

  • Aetna U.S. Healthcare has approximately 6.6 million new members added through the acquisition of Prudential HealthCare.
  • The total number of eligible insured Americans covered by Aetna is approximately one in 10 or 22.4 million nationwide.
  • Aetna covers the most people under managed care plans, with 18.4 million members after the acquisition of Prudential HealthCare's health units.
  • Aetna has paid the equivalent of $200 per member to buy Prudential HealthCare.
  • Aetna's shares dropped $1.63 to $79.19 on the New York Stock Exchange on the day of the acquisition.

Sources:

  • "Aetna to Buy Prudential's Healthcare Unit for $1 Billion" - Bloomberg
  • "Aetna to buy Prudential's healthcare unit for $1 billion" - Insurance News
  • Aetna Inc. official statement and press release.