Aetna

Aetna Inc.
	File:Aetna logo.svg Logo since 2012
Company type	Subsidiary
Industry	Managed health care
Founded	January 1, 1819; 207 years ago in Hartford, Connecticut, United States
Founder	Thomas Kimberly Brace
Headquarters	Hartford, United States
Area served	United States
Key people	Karen S. Lynch (President, post-2018)
Products	Health insurance, dental insurance, pharmaceutical benefits, behavioral health, long-term care, disability insurance
Number of employees	Not specified
Parent	CVS Health

Aetna Inc. () is a U.S.-based managed health care provider delivering a range of traditional and consumer directed health care insurance products and related services. These include coverage for medical care, pharmaceuticals, dental services, behavioral health, long-term care, and disability insurance. The company primarily focuses on employer-sponsored insurance plans as well as Medicare programs. Since November 28, 2018, Aetna has functioned as a subsidiary under the umbrella of CVS Health.

Aetna’s extensive network encompasses 22.1 million members enrolled in medical plans, 12.7 million dental plan participants, 13.1 million pharmacy benefit management users, 1.2 million healthcare professionals, over 690,000 primary care physicians and specialists, along with more than 5,700 hospitals.

Established in Hartford, Connecticut, Aetna’s origins trace back to the Aetna (Fire) Insurance Company. The company's name is inspired by Mount Etna, which is known as the most active volcano in Europe historically.

1800s

1819: Thomas Kimberly Brace founded the Aetna (Fire) Insurance Company in Hartford, where he served as the inaugural President and board member until 1860. Joseph Morgan, a co-founder, was an ancestor of financier J. P. Morgan. Yale-educated attorney Henry Leavitt Ellsworth succeeded Brace as president and later became the first U.S. Patent Commissioner; he also served on the board for sixteen years. His brother William Wolcott Ellsworth acted as both director and the company’s first general counsel.
1820: Brace revised Aetna’s Charter to incorporate life insurance and annuities, earning him recognition as a pioneer in American life insurance.
1853: The annuity division separated from the fire insurance business to establish Aetna Life Insurance Company with Eliphalet Adams Bulkeley appointed president; subsequently, the fire insurance segment merged into Connecticut General and later became part of Cigna. J. B. Bennett was named general agent.
1854: Thomas O. Enders joined Aetna as its first full-time employee and eventually rose to the presidency.
1857: During the Panic of 1857, Eliphalet Bulkeley ensured the company’s survival by preventing liquidation.
1850s: Aetna issued life policies on enslaved African Americans with owners listed as beneficiaries.
1861: Introduced dividend-paying life insurance policies offering higher commissions to agents; sales surged amid the Civil War.
1864: Business expanded sixfold since 1861; annual premiums surpassed $1 million.
1865: Complied with regulatory standards in Massachusetts and New York, broadening market access.
1867: Revenue increased from $78,000 in 1861 to $5.129 million; headquarters relocated to 670 Main Street in Hartford.
1868: Employed its first actuary and transitioned to cash-only premium payments.
1872: Following Bulkeley’s passing, Thomas O. Enders assumed the presidency.
1878: Capital stock grew from $150,000 to $750,000.
1879: Morgan G. Bulkeley took over as president succeeding Enders.
1888: Acquired its first owned headquarters building at 650 Main Street in Hartford, which remained in use for forty-two years.
1891: Launched its first accident insurance policy.
1892: Convened its first general agents conference in Chicago.
1899: Expanded product lines by introducing health insurance policies.

1900s

1902: Aetna established a dedicated Accident and Liability division aimed at providing employers' liability and collective workmen's insurance, laying the groundwork for the Aetna Accident and Liability Company.
1903: The company formed an Engineering and Inspection Division to improve safety standards in workplaces.
1904: Aetna unveiled its inaugural corporate seal, depicting the home office encased within a globe, symbolizing its market presence.
1907: The introduction of automobile insurance led to the creation of Aetna Casualty and Surety Company.
1908: Julia Kinghorn became the first woman employed at Aetna's home office.
1910: Under E. E. Cammack’s direction, Aetna adopted Hollerith punched card machines for processing mortality statistics and expanded its workforce by hiring female clerks, marking early technological integration and diversification.
1911: The company launched its initial nationwide advertising initiative and established a bond department to promote fidelity and surety insurance products.
1912: Aetna introduced the first combined automobile insurance policy that consolidated various coverages; notably, some policyholders were among those lost on the RMS Titanic.
1913: To provide fire insurance for vehicles, Aetna founded the Automobile Insurance Company affiliate; it also broadened its portfolio to include windstorm, tornado, leasehold, and marine insurance, alongside initiating group life insurance sales.
1917: The firm was renamed Aetna Casualty and Surety Co.

1924: Farm mortgages accounted for $94 million—43% of total assets—and Aetna acquired The Standard Fire Insurance Co.
1960: Marking its international expansion, Aetna acquired Excelsior Life Insurance Company in Canada.
1968: The company secured a controlling interest in Sydney-based Producer's and Citizen's Cooperative Assurance Company and made its debut on the New York Stock Exchange (NYSE).
1970: Under B.E. Burton’s leadership, pension administration grew to exceed one billion dollars following ERISA legislation.
1981: Aetna invested in Chilean enterprises with a 40% ownership stake and extended operations into England, Spain, Hong Kong, Taiwan, Indonesia, and South Korea.
1996: The property and casualty segment was sold to The Travelers Companies; simultaneously, Aetna acquired U.S. Healthcare—founded by Leonard Abramson—and rebranded as Aetna Inc.
1998: By purchasing NYLCare Health Plans from New York Life Insurance for $1.05 billion, Aetna added approximately 2.2 million members to its base.
1999: With the $1 billion acquisition of Prudential HealthCare, Aetna became the largest health benefits provider in the United States, serving over 21 million members.

2000s

2000: John Rowe was appointed CEO and president of Aetna. He implemented workforce reductions exceeding 10,000 positions and raised insurance premiums annually by 11–13%. The company allocated over $20 million toward IT system enhancements that enabled identification and elimination of unprofitable accounts, which led to a decline of approximately 8 million insured lives due to increased premium costs. That year, Aetna divested its financial services and international operations to ING Group for $7.7 billion while spinning off its health business to shareholders to concentrate exclusively on health and group benefits. Additionally, the company publicly apologized for insuring enslaved individuals’ lives during the 1850s.
2001: To manage reputation amid corporate restructuring efforts, Aetna recruited global public relations expert Roy Clason Jr.
2002: Rowe further streamlined the customer base from 19 million to around 13 million by withdrawing from unprofitable markets, including nearly half of Medicare counties served.
2006: John Rowe stepped down from his roles as CEO and executive chairman.
2007: The acquisition of Schaller Anderson expanded Aetna’s footprint into Medicaid and State Children’s Health Insurance Program plan administration.
2008: CEO Ron Williams received total compensation of $38.12 million; additionally, Aetna entered the pet health insurance sector through Pets Best Insurance Services.
2009: Demonstrations occurred outside Aetna’s Hartford headquarters advocating for a public health insurance option amid national healthcare reform discussions. Connecticut authorities investigated potential misrepresentations in Aetna’s Medicare Advantage and prescription drug program communications. U.S. Senator Tom Harkin initiated an inquiry into Aetna’s health insurance pricing practices. That year also saw workforce reductions amounting to approximately 3.5% (625 employees), alongside announced premium increases for 2010 that could cause up to 650,000 customers to discontinue coverage. In December, Aetna amended its regulatory filings from 2008 with a $4.9 billion correction revealing lower expenditures on small business healthcare than originally reported.

2010s

2010: A contract disagreement arose between Aetna and Continuum Health Partners, disrupting coverage at several New York hospitals; the parties reached a new agreement retroactively in July.
2011: The acquisition of Prodigy Health Group, which owns the third-party administrator Meritain Health, expanded Aetna’s administrative service capabilities.
2012: Aetna introduced a refreshed logo created by Siegel+Gale to modernize its brand image. Additionally, it partnered with Inova Health System to launch Innovation Health, targeting the Northern Virginia region.
2013: The company finalized a $5.7 billion purchase of Coventry Health Care, substantially boosting its market presence.
2014–2017: Medicaid services were rebranded as Aetna Better Health, enhancing the company’s footprint within government healthcare programs.
2015: A $37 billion acquisition proposal for Humana was announced, intending to broaden Medicare-related offerings.
2017: Federal courts blocked the Humana merger on antitrust grounds, leading to its cancellation. That year also saw the establishment of Banner|Aetna, a joint venture with Banner Health serving Arizona. Plans to move headquarters to New York City were announced but later abandoned following CVS Health’s acquisition of Aetna; headquarters remained in Hartford. On December 3, CVS Health declared its $69 billion acquisition of Aetna, merging retail pharmacy with health insurance under CEO Larry Merlo. Post-merger, Aetna CEO Mark Bertolini stepped down while President Karen S. Lynch took charge of operations.
2018: On November 28, CVS Health completed its acquisition of Aetna, integrating operations and removing AET from the New York Stock Exchange.

2020s

2020: In November, Karen Lynch was named CEO of CVS, providing strategic direction at the executive level.
2021: February marked the announcement by Lynch that Aetna would reenter the individual insurance market through ACA exchanges beginning in 2022, broadening its product lineup and customer base.

1999

A California jury awarded $116 million in punitive damages for malice, oppression, and fraud to a widow after an Aetna subsidiary delayed approval for her late husband's cancer treatment. This verdict ranked among the largest against a health maintenance organization at that time. The matter was resolved through settlement in 2001.

2000

The U.S. Court of Appeals upheld a $1.855 million federal jury award granted to Brokerage Concepts Inc. (BCI) against Aetna U.S. Healthcare, its Pennsylvania subsidiary, and former executive Richard Wolfson. BCI claimed that Aetna U.S. Healthcare leveraged its dominance in prescription drug sales to pressure BCI's client—the "I Got It at Gary's" pharmacy chain—to switch to Corporate Health Administrators (an Aetna subsidiary), threatening exclusion from its pharmacy network otherwise.

2001

The Maryland Insurance Commissioner imposed fines totaling $1.4 million on five health insurers for violations related to claims payments; Aetna was penalized twice, incurring the largest penalty of $850,000.
Texas authorities levied a $1.15 million fine on Aetna for delayed payments to medical providers, mandating compensation to the impacted doctors and hospitals.

2002

The New York Department of Insurance issued a $2.5 million fine against Aetna US Healthcare and UnitedHealthcare due to improperly handled claims, wrongful denials, use of unlicensed agents, and outdated claims processing systems.

2003

To settle a class-action lawsuit involving approximately 700,000 physicians and medical organizations, Aetna agreed to simplify communications, decrease administrative burdens, and improve quality of care. The settlement amounted to $470 million and addressed allegations that Aetna systematically lowered physician reimbursements and overruled treatment decisions.
A class-action suit filed by dentists accusing Aetna of interfering with dental treatments to reduce expenses and imposing excessive paperwork was resolved with a settlement between Aetna and the American Dental Association. The agreement provided $4 million to between 40,000 and 50,000 dentists and allocated $1 million to the ADA Foundation.
Georgia Insurance Commissioner John W. Oxendine fined Aetna's Prudential Health Plan $100,000 for violating prompt payment regulations by delaying claim reimbursements. Prior penalties against Aetna in Georgia totaled $411,200 across four separate fines.

2007

The New Jersey Department of Banking and Insurance penalized Aetna $9.5 million for denying coverage of certain out-of-network services—including emergency care—contravening state laws.

2009

Cornelius Allison, a former employee, filed a lawsuit against Aetna following a data breach that exposed personal information of 450,000 current and former employees and applicants; allegations included negligence, breach of contract, and privacy violations.
The Arizona Department of Insurance fined Aetna Life Insurance Company and Aetna Health, Inc. for multiple infractions including failure to notify policyholders about their appeal rights and decisions, particularly in urgent cases involving potentially life-threatening conditions.

2010

Aetna incurred a $750,000 penalty from the New York Insurance Department due to violations in managing an affordable healthcare plan. Issues cited included failure to provide required notices regarding rate increases and policy conversion options, delays in reporting enrollment figures, and ignoring requests for data.

2018

In February 2018, the California Department of Insurance initiated an inquiry into Aetna after testimony from a former medical director revealed he did not review patient records when approving or denying claims. California Insurance Commissioner Dave Jones confirmed the investigation. Subsequently, committees from the U.S. Senate Finance and Health sectors requested comprehensive details on Aetna’s claims handling and appeals procedures. Although Aetna settled the related lawsuit in 2019, the investigation continued.
Also in 2018, an Oklahoma jury awarded $26.5 million in damages against Aetna in the case Ron Cunningham v. Aetna, primarily based on findings of insurance bad faith practices.

2021

On September 11, 2021, attorney Brian Adesman initiated a federal class action lawsuit against Aetna, accusing the insurer of providing inferior treatment for mental health compared to physical health within its plan management. Adesman stressed that "insurance companies must comply with the law and cannot prioritize profits over individuals."

Life insurance policies on slaves

In 2000, Deadria Farmer-Paellmann, leader of the Restitution Study Group, uncovered that Aetna had issued life insurance policies on enslaved individuals between approximately 1853 and 1860. That same year, Aetna confirmed the existence of these policies based on substantial evidence and issued a formal public apology.

Farmer-Paellmann filed a lawsuit in 2002 against Aetna and other entities seeking reparations for descendants of enslaved people. The suit argued that these companies had been "unjustly enriched" through slavery and connected this history to persistent racial inequalities in income, education, and health outcomes. The case was dismissed in court and the dismissal was upheld upon appeal.

In 2006, Farmer-Paellmann launched a nationwide boycott targeting Aetna to demand reparations. In response, Aetna highlighted its $36 million commitment to diversity programs focused on education, healthcare, economic growth, community partnerships, and support for African-American-owned businesses as a more impactful form of assistance than reparations related to its historical slave insurance policies.

Lobbying and campaign contributions

During 2009, Aetna allocated over $2 million toward lobbying activities, including $809,793 in the first quarter alone—a 41% rise compared to the same period in 2008. The company’s political donations featured more than $110,000 to Senator Joe Lieberman (I-CT) and $56,250 to Senator Max Baucus (D-MT), who chaired the Senate Finance Committee. From 2005 through 2009, Aetna ranked among Baucus’s leading contributors.

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