Aetna sees broad member growth hitting 2007 goal

By Lewis Krauskopf

NEW YORK (Reuters) - The head of Aetna Inc. (AET.N: Quote, Profile, Research, Stock Buzz) said on Wednesday the company would take a "very disciplined, multi-part" strategy to achieve its 2007 membership forecast that some analysts view as too aggressive.

The No. 3 U.S. health insurer sees growth coming from its business geared toward individuals, an expansion of its small-group business into new regions, as well as growth in its middle-market segment, Chief Executive Ron Williams said at the Reuters Health Summit in New York.

Aetna last month forecast membership growth for 2007 of at least the 650,000 it is expecting for 2006. Some analysts have since speculated Aetna may not achieve that number or will have to reduce rates to reach it.

"We're very comfortable with the guidance because we think that we have a very broad set of customer segments that we targeted," Williams said. "We're not trying to get it all in any one particular segment."

"It really is a very disciplined, multi-part strategy that doesn't require any one big bang," Williams added.

Aetna initially forecast adding 900,000 to 1 million members in 2006, but has since cut its forecast for this year down to 650,000 members.

Williams said the company experienced more 2006 business "lapses" in its small-group area than it expected next year. The 2006 lapses stemmed from competition from nonprofits in the Northeast, Mid-Atlantic and Florida, he said.

Hartford, Connecticut-based Aetna would not have to take customers from the other national players to meet its goal, Williams said, as 25 million people are still enrolled in smaller health plans.  Continued...