(AET) Aetna Engages in Comprehensive Primary Care Initiative

Aetna Inc. (AET) has joined the Comprehensive Primary Care (CPC) initiative.  This initiative is one of the wide-ranging efforts taken by the Obama Administration to promote coordinated care at lower costs for all Americans, using new tools provided by the Affordable Care Act.

In this regard, Aetna has partners with Centers for Medicaid and Medicare Services (CMS) Innovation Center and 500 primary care physicians nationwide.

Earlier this year, Aetna was picked by the CMS Innovation Center to participate in both the New York and Ohio-Kentucky regions. The company will soon start getting in touch with other practices selected by CMS to participate in the program. The program will be launched on November 1, 2012 for Aetna’s members and other patients.

This initiative from the CMS Innovation Center will help primary care practices deliver higher quality, better coordinated, and more patient-oriented care. The initiative intends to partner with commercial and public health insurers to promote community-wide investments in comprehensive primary care.

Following the Affordable Care Act, this collaboration is modeled after the innovative practices developed by large employers and others in the private sector. It will invest in primary care practices throughout various local communities, helping small businesses, patients and taxpayers use their health care dollars more wisely.

Another health insurer Humana Inc. (HUM) has also announced the implementation of its previously announced participation in this CMS initiative.

Aetna currently retains a Zacks # 3 Rank, which translates into a short-term ‘Hold’ rating. We are also maintaining our long-term “Neutral” recommendation on the shares.

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