Aetna’s workers comp managed care entity (Aetna Workers’ Compensation Advantage, or AWCA) is looking internally for a new leader to replace recently departed Robyn Walsh. Walsh retired from Aetna recently, joining several other senior execs in taking advantage of the vesting and retirement plan.
Sources indicate that Aetna’s search is concentrating on internal staff. While this is admirable, it is also somewhat curious. Aetna got out of the workers compensation business several years ago when it sold its P&C business to the Travelers. With one or two exceptions, most of the AWCA staff have very limited WC experience. Industry knowledge is critical in workers comp, both to build a credible product and to speak credibly to potential customers.
With the very limited success enjoyed by AWCA to date, I wonder if their internal push is more out of necessity than desire. It is indeed difficult to see how this venture has been able to survive as long as it has with one customer in a single state. Perhaps Aetna does not believe it will be able to attract outside talent, and therefore is concentrating its search internally.
On the other hand, given Coventry’s lack of success in finding a leader for its First Health WC subsidiary, perhaps Aetna is just being smart. Perhaps.
Other sources indicate Aetna made several runs at a workers comp pharmacy benefit management firm earlier this year.
This is another head scratcher. Most WC PBMs are independent; buyers do not see much synergy between regular medical networks and PBMs; and given the dollars on the table, there would have been better, more strategic places for Aetna to invest.
What does this mean for you?
Keep an eye on Aetna, and if you are interested in contracting with them, make sure you are contractually protected if they exit the business.
Sep
13
