Aetna Introduces Health Benefit Plans for Small Business.

Business Editors

PORTLAND, Maine--(BUSINESS WIRE)--March 23, 2004

Small Business Portfolio Offers Simplicity, Affordability and Compatibility With The New Health Savings Accounts

Aetna (NYSE: AET) has introduced 13 health benefit plan options in Maine that focus specifically on small business. The portfolio includes five HMO options, one catastrophic coverage plan, and seven Preferred Provider Organization ("PPO") options, including one that is fully compatible with the new Health Savings Accounts ("HSAs") authorized by the Medicare Prescription Drug, Improvement and Modernization Act of 2003.

"At a time when Maine has weighed into the national debate on how to provide affordable health coverage to all, Aetna's new product offerings complement state initiatives by offering new options that were previously unavailable customers with fewer than 50 employees.," said Gretchen Spann, Aetna's head of small business in Maine. "Employers and brokers tell us they need simplicity, flexibility, affordability and choice. For some that means plans with variable co-pays and deductibles which allow them to keep a firmer grasp on costs. Others seek plans with more comprehensive benefits. Aetna's PPO and HMO options are flexible enough to address each of our customers' specific needs."

"We view our role as being an advocate for small businesses and the brokers and insurance agents who serve them," explained James Reid, Aetna's Head of Small Group Business in the Northeast. "This means going the extra step to simplify the process of buying insurance, as well as establishing the Aetna Small Group Customer Service Center staffed by over 500 professionals exclusively dedicated to serving our small business clients and their insurance agents."

HSAs are tax-deductible accounts that consumers can use to pay for qualified medical expenses. To be eligible, an individual must be covered under a health plan with a minimum annual deductible of $1,000 for individual coverage and $2,000 for family coverage. An out-of-pocket maximum under the plan can be no more than $5,000 for individual coverage and $10,000 for family coverage. HSAs are portable, and contributions to the account can be made by both employers and employees. In addition, unused balances can be carried forward from year to year, making them a strong value for consumers. To simplify the process of finding a bank or qualified institution to administer the HSA, Aetna has established a convenient referral option and will be offering an integrated product shortly.

Aetna is one of the nation's leading providers of health care, dental, pharmacy, group life, disability and long-term care benefits, serving approximately 13.0 million medical members, 10.9 million dental members, 7.4 million pharmacy members and 12.3 million group insurance customers, as of December 31, 2003. The company has expansive nationwide networks of more than 600,000 health care services providers, including over 362,000 primary care and specialist physicians and 3,626 hospitals. For more information about Aetna, please visit the company's web site at www.aetna.com.