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[December 18, 1998 ]
The Prudential Insurance Company of America and Aetna announced in December that Prudential's healthcare business will be acquired by Aetna. The acquisition will make Aetna the country's largest provider of health benefits with over 22 million plan members.
Prudential currently administers three of the medical plans available to UC employees and annuitants: Prudential High Option, UC Care, and Core Medical. Employees enrolled in these plans should be aware that their medical plan coverage remains in force. All contractual agreements that Prudential has with UC for the remainder of 1998 as well as the 1999 plan year will be honored. Aetna anticipates that physician networks will be larger, although no change is expected within the next several months. When any change occurs, members will be notified.
While the boards of both companies have approved the acquisition, it is not yet completed. This is expected during the second quarter of 1999, subject to approval by federal antitrust and state regulators.
UC's Group Life Insurance plans—University-Paid Life, Employee-Paid Life, and Dependent Life—which are also administered by Prudential—are not affected by the acquisition and will remain with Prudential.