Aetna: A Comprehensive History of a Managed Health Care Leader
Aetna has long been a cornerstone of the American insurance landscape. From its origins in the mid-19th century to its modern role as a major subsidiary of CVS Health, the company has evolved through significant industrial shifts, massive acquisitions, and structural transformations. Today, it stands as a prominent player in managed health care—a system of delivering health care services that aims to control costs and manage quality.
Key Facts
- Founded: May 28, 1853, by Eliphalet Adams Bulkeley.
- Headquarters: Hartford, Connecticut.
- Parent Company: CVS Health (since 2018).
- Primary Industry: Managed health care and health insurance.
- Major Milestone: Acquired by CVS Health in a $69 billion deal in 2018.
Foundations and Early Growth
The company was established on May 28, 1853, originally known as the Aetna Life Insurance Company. Founded by Eliphalet Adams Bulkeley, the firm experienced rapid financial growth during its early decades. By 1867, the company's income had surged from $78,000 in 1861 to over $5.1 million, prompting a move to its third home office located at 670 Main Street in Hartford.
As the business expanded, so did its financial foundation. In 1878, Aetna increased its capitalization from $150,000 to $750,000, signaling its growing stability and influence within the insurance sector.
Expansion and Modernization
The 20th century brought significant changes to Aetna's service offerings and geographic reach. In 1924, the company expanded its presence by selling insurance in Maryland. Throughout the following decades, Aetna transitioned from a traditional life insurance provider toward a leader in health care management.
A pivotal moment occurred in 1998 when Aetna acquired NYLCare Health Plans from the New York Life Insurance Company. This $1.05 billion acquisition was a transformative move that added 2.2 million members to its roster, significantly bolstering its position in the health insurance market.
Diversification of Services
In the early 2000s, Aetna began to diversify its product lines beyond standard health and life insurance. In 2008, the company entered the pet insurance market by offering coverage through Pets Best Insurance Services.
The CVS Health Era
The most significant recent shift in Aetna's corporate structure occurred in late 2018. On November 28, 2018, CVS Health completed its acquisition of Aetna. This $69 billion merger resulted in Aetna being delisted from the New York Stock Exchange (NYSE), where it had previously traded under the ticker symbol AET.
Under the CVS Health umbrella, Aetna continues to operate through various specialized subsidiaries, including:
- Aetna Better Health
- Aetna International
- Meritain Health
- First Health PPO Network
- Active Health Management
The company maintains a significant physical presence across the United States, with various offices serving different regions, such as those in Nebraska and North Dakota.
Company Overview Summary
| Category | Details |
|---|---|
| Industry | Managed health care |
| Parent Company | CVS Health |
| Revenue (2018) | $60.6 billion |
| Employees (2018) | 47,950 |
| Headquarters | Hartford, Connecticut |
Frequently Asked Questions
Who founded Aetna?
Aetna was founded by Eliphalet Adams Bulkeley on May 28, 1853.
Is Aetna still an independent company?
No, Aetna is currently a subsidiary of CVS Health following a major acquisition completed in 2018.
What kind of insurance does Aetna provide?
Aetna primarily focuses on health insurance and managed health care, though it has also offered pet health insurance through Pets Best Insurance Services.
Where is Aetna headquartered?
The company's headquarters are located at 151 Farmington Avenue, Hartford, Connecticut.
What was the NYLCare acquisition?
In 1998, Aetna purchased NYLCare Health Plans from New York Life Insurance Company for $1.05 billion, which added 2.2 million members to Aetna.