Prudential Sells Health Care Line To Aetna for $1B


Analysts will watch Aetna very carefully, following its agreement to take health care off Prudential's hands. Aetna will buy Prudential's HMO, preferred-provider organization, indemnity health and dental lines for $1 billion.

Last year, Aetna bought New York Life's health care products while Aetna was still struggling to digest its acquisition of U.S. Healthcare. As it did with NYLCare, Aetna plans a go-slow approach to bringing Prudential HealthCare into the fold.

Though Prudential HealthCare is a money loser, the sale nonetheless makes Aetna the largest managed care company, with 18 million subscribers.

In another major transaction, Eli Lilly & Co. plans to sell PCS Health Systems, the country's largest pharmacy benefit manager with 56 million subscribers, to Rite-Aid. The pharmacy chain will pay $1.5 billion for PCS, whose profitability has been hampered by a slower-than-expected spread of managed care and by regulation. According to Securities and Exchange Commission filings, Lilly downgraded PCS's value more than $2 billion last year.

Career Opportunities

HAP, a subsidiary of Henry Ford Health System, is a nonprofit health plan providing coverage to individuals, companies and organizations. This executive develops strategies to meet membership and revenue targets through products, pricing, market segmentation and advertising.  Aligns business among Business Development, Commercial Sales, Medicare and Public Sector Programs and Product Development. Seeks to enhance and be responsible for business development and expansion through the development of an effective product portfolio, strong interpersonal relationships and service excellence.

Apply via email to jfedder1@hfhs.org or online at http://p.rfer.us/HENRYFORDlXqAJA

Subscribe to Our Newsletters

Monthly table of contents

Be notified as each issue of Managed Care is available online.

Biweekly newsletter

Recent topics have included:

PTCommunity news

New drug approvals, clinical trials, drug management. Three times per week.