Pursuing its aggressive
diversification strategy, Aetna is to acquire Prodigy Health Group
(PHG), the US’ largest independent third party administrator of
self-funded health care plans, for $600m.
PHG operates in 15 states and
brings with it 600,000 medical members, 450,000 pharmacy
members.
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“The acquisition of Prodigy
Health Group is in keeping with Aetna’s strategy of diversifying
its product offerings and adding new revenue streams,” said Aetna
chairman, CEO and president Mark Bertolini.
“Prodigy extends Aetna’s
reach into the third-party administrator business while providing a
separate option under the Prodigy brands that addresses
affordability and quality for middle-sized and small businesses and
customers who are primarily price-focused.”
Acquisition of PHG follows
hard on the heels of the US health insurer’s acquisition of health
information exchange technology vendor Medicity for
$500m.Separately, Aetna has announced that it has entered into a
three-year reinsurance agreement with a special purpose vehicle,
Cayman Islands-based Vitality Re II Limited.
The agreement allows Aetna to
reduce its required capital and provides $150m of collateralised
excess of loss reinsurance coverage on a portion of its group
commercial health insurance business.
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