Dive Brief:
- While Aetna voices its continued commitent and optimism for a late 2016 merger with Humana, the company revealed this week it has little planned in terms of how it would actually integrate the two behemoth insurance providers.
- The one set detail, Aetna CEO Mark Bertolini recently reiterated, is Aetna plans to make Louisville, Kentucky, the merged company's headquarters for Medicare Advantage, Medicaid and Tricare for active-duty military and their families.
- Other questions, such as those surrounding leadership structure and employee retention, are unanswered.
Dive Insight:
While Bertolini says he is in contact with Humana CEO Bruce Broussard, much of their planning would have to take place further down the line in the acquisition process.
"All the leadership decisions, operating model, management process are still to be defined," Bertolini was quoted by Louisville Business First. "I mean, they're still a competitor and so we don't have the kind of visibility or command of that organization to make those decisions."
One planning element Bertolini did discuss was the existence of "stay bonuses" to retain key employees.
Meanwhile, the DOJ and state regulators continue to review the merger for approval. Aetna also announced its 2015 earnings during Monday's call. The insurer credits its growing Medicaid and Medicare business for driving some of its 17% increase in net income to $2.4 billion.