Aetna Inc. is one of the largest health insurance companies in the U.S. It “offers life, disability, and long-term care insurance, as well as retirement savings products. Its Health Care division offers managed care plans, health savings accounts, and traditional indemnity coverage, along with dental, vision, behavioral health, and Medicare plans. The division covers about 17 million medical members. Aetna’s Group Insurance segment sells life, disability, and long-term care insurance nationwide. And its Large Case Pensions segment offers pensions, annuities, and other retirement savings products.”[1]

Criticism

Worker Rights

• Ronald A. Williams, Chairman and Chief Executive Officer of Aetna, had total pay of $23,045,834 in 2008 according to Forbes.[2]

Political Influence

• In the 2006 U.S. election, Aetna gave $233,500 to Federal candidates through its political action committee – 28% to Democrats and 68% to Republicans.
• In 2008 it gave $231,750 – 36% to Democrats and 64% to Republicans.[3]
• In 2007, Aetna spent $2,091,502 for lobbying.[4]

Business Ethics

• US: UnitedHealth Faces Suit Over Payment System: “At the center of the investigation is a common practice among health insurers. While they typically pay in-network hospitals and physicians a negotiated fee for medical claims, out-of-network providers are reimbursed according to “usual and customary” or “reasonable” charges, or what insurers have determined is the going rate for a given procedure or service in that area.”

• Settlements and Verdicts – Aetna et al., October 27, 2003. “Final approval had been granted to the $400-$450 million settlement of the class action lawsuit filed on behalf of more than 700,000 physicians. The suit claimed that the defendants had “violated contracts and defrauded doctors in violation of the federal Racketeer Influenced and Corrupt Organization Act (RICO)”. The settlement calls for improvements to physician-related business practices and a National Advisory Committee of Practicing Physicians to provide advice to Aetna on issues of importance to physicians.”[5]

• Article: Aetna will pay $8.4m in pension scandal Settles with 19 public boards in Massachusetts, one in R.I. Aetna Life Insurance Co. announced yesterday it is paying a total of nearly $8.5 million to 19 public pension systems in Massachusetts and one in Rhode Island to settle potential legal problems related to the company’s secret dealings with Boston broker Carmen Elio. [6]

• Settlements and Verdicts – Aetna Inc., July 23, 2004. “Final approval has been granted to a settlement in the class action lawsuit filed by the American Dental Association on behalf of approximately 150,000 dentists. The suit claimed that the Hartford-based insurer interfered with dental procedures in order to cut costs, and the company forced dentists to complete excessive paperwork. Under the terms of settlement, Aetna would pay $4 million to the dentists and $1 million to the ADA Foundation.”[7]

Praise

Human Rights

Aetna achieved the highest score (100 out of 100) in 2008 from the Human Rights Campaign which puts out a buying guide that rates corporations on policies that affect gay and lesbian employees. http://www.hrc.org/buyersguide

Brands and Subsidiaries

• Active Health Management, Inc.
• Aetna Life Insurance Company
• Schaller Anderson, Incorporated

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