The next generation in online publishing...
Sign up to read the digital versions of Managed Care, P&T, and Biotechnology Healthcare. These digital editions are free, searchable, and can be downloaded and read offline. To read a sample of the digital version of Managed Care, follow this link:
Sample digital edition
Register for a free digital subscriptionArchive issues of Managed Care:
- January 2008
- February 2008
- March 2008
- April 2008
- May 2008
- June 2008
- July 2008
- August 2008
MANAGED CARE January 1999. ©1999 Stezzi Communications
NEWS AND COMMENTARY
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.