Aetna to Offer Medicare Advantage Plans in Washington, D.C. Metropolitan Area; Plans include zero-premium, prescription drug options.

LARGO, Md. -- More than 350,000 Medicare beneficiaries in the Washington, D.C. metropolitan area will have a new option from Aetna (NYSE: AET) for health care coverage that provides both medical and prescription drug benefits, sometimes even with "zero premiums."

The Centers for Medicare & Medicaid Services (CMS) has approved Aetna's application to offer Individual Medicare Advantage plan options in the District of Columbia, three Maryland counties and one Northern Virginia county.

"Aetna is continuing to expand its participation in the Medicare Advantage program in 2005," said Frank G. McCauley, head of Aetna's Retiree Markets. "We are committed to offering a broad portfolio of health benefits solutions for retirees, and we are pleased to have the opportunity to expand our coverage into the metropolitan Washington, D.C. area." Aetna expects to more than double the number of states in which it plans to offer its Medicare Advantage plans, from five today to 13 by 2006, pending federal approval.

Aetna will offer the Aetna Golden Medicare Plan(R) (HMO) in the District of Columbia, Maryland's Frederick, Montgomery and Prince George's counties, and Virginia's Fairfax County. The Aetna Golden Choice(TM) Plan (point-of-service) also will be offered in the three Maryland counties.

"Aetna is very excited to be able once again to offer Medicare Advantage plans to beneficiaries living in the Washington, D.C. area," said Eric Cormier, head of Aetna's Medicare business in the Mid-Atlantic area. "Our Medicare plans offer choices that do not exist with traditional Medicare, including a zero-premium plan with prescription drug coverage."

The Washington, D.C. area presents tremendous potential for Medicare Advantage plan membership growth, Cormier noted. "We're pleased to offer plans that have been well-received in the marketplace, including a variety of premium and medical plan options, excellent medical and prescription benefits, and other value-added services."

Aetna's Medicare Advantage plans offer several advantages over traditional Medicare and Medicare supplemental plans currently available in the area, Cormier said.

The Aetna Golden Medicare Plan (HMO) plans feature:

--Three HMO plan designs, including "zero-premium" plans with unlimited coverage of generic prescription drugs;

--Routine preventive care services covered at 100 percent in all plans;

--Plans with unlimited coverage of generic prescription drugs, plus the option to purchase limited brand-name prescription drug coverage for an additional monthly premium;

--Value-added services that provide reduced rates on dental care, vision services and products, and alternative health care;

--Instant access to health information 24 hours a day through toll-free phone and on-line resources.

In Maryland's Frederick, Montgomery and Prince George's counties, beneficiaries also may choose the Aetna Golden Choice Plan, a point-of-service plan option that offers:

--Freedom to choose doctors and hospitals, either in or out of the Aetna network;

--Routine preventive care services covered in-network at 100 percent;

--Plans with unlimited coverage of generic prescription drugs, plus the option to purchase limited brand-name prescription drug coverage for an additional monthly premium;

--Value-added services that provide reduced rates on dental care, vision services and products, and alternative health care;

--Instant access to health information 24 hours a day through toll-free phone and on-line resources.

Aetna currently offers the Aetna Golden Medicare Plan and Aetna Golden Choice Plan (point-of-service) in seven Maryland counties: Anne Arundel, Calvert, Charles, Baltimore, Harford, Howard and Baltimore City.

Aetna filed applications with the Centers for Medicare & Medicaid Services (CMS) to offer the new Medicare Part D prescription drug plan (PDP) on a national basis, including the metropolitan Washington, D.C. area, in 2006. Application and bid filings for each PDP region are subject to CMS approval and contract award in early September. In addition, Aetna filed an application with CMS to participate in the regional Medicare PPO program that will be available in 2006. Plans were required to submit bids, which are subject to CMS approval, for the regional PPOs.

As one of the nation's leading providers of health care, dental, pharmacy, group life, disability and long-term care benefits, Aetna puts information and helpful resources to work for its approximately 14.4 million medical members, 12.8 million dental members, 9.0 million pharmacy members and 14.0 million group insurance members to help them make better informed decisions about their health care and protect their finances against health-related risks. Aetna provides easy access to cost-effective health care through a nationwide network of more than 672,000 health care professionals, including approximately 400,000 primary care and specialist doctors and 4,084 hospitals. For more information, please visit www.aetna.com. (Figures as of March 31, 2005)