...HR MANAGEMENT CASE STUDY Case Aetna: Investing in Diversity Case By Wayne Cascio, Ph.D. PROJECT TEAM Author: Wayne Cascio, Ph.D. SHRM project contributor: Nancy A. Woolever, SPHR Copy editing: Katya Scanlan, copy editor Design: Blair Wright, senior graphic designer © 2009 Society for Human Resource Management. Wayne Cascio, Ph.D. Development of this case was made possible by a grant from the Society for Human Resource Management and the National Academy of Human Resources. All of the characters in the case are fictitious. Information presented was current as of the time the case was written. Any errors are solely the author’s. Note to HR faculty and instructors: SHRM cases and modules are intended for use in HR classrooms at universities. Teaching notes are included with each. While our current intent is to make the materials available without charge, we reserve the right to impose charges should we deem it necessary to support the program. However, currently, these resources are available free of charge to all. Please duplicate only the number of copies needed, one for each student in the class. For more information, please contact: SHRM Academic Initiatives 1800 Duke Street, Alexandria, VA 22314, USA Phone: +1-800-283-7476 Fax: +1-703-535-6432 Web: www.shrm.org/education/hreducation 09-0365 Aetna: Investing in Diversity INTRODUCTION Raymond Marcos, chief diversity officer at Aetna, is preparing to make a presentation ...
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...A Closer Look: Aetna A Closer Look: Aetna History Aetna, Inc. is an American health insurance company, which is the direct descendant of Aetna (Fire) Insurance Company, of Hartford, Connecticut. In 1850 Aetna began operation of an Annuity Fund and the company would soon to be known as Aetna Life Insurance Company. In 1899 Aetna became one of the first publicly held insurance companies to enter the health insurance field. Since then Aetna has become committed to providing access to cost-effective health care of the highest possible standard, to protect people against health-related risks and enable them to achieve both good health and financial security. Aetna has provided such products and services for 159 years, and has the ability to be a leader in building a strong and effective system of health care by cooperating with health care professionals and public officials (Aetna, n.d). Aetna, Inc. provides a range of traditional and consumer directed health care insurance products and related services, including medical, pharmaceutical, dental, behavioral health, group life, long-term care, and disability plans, and medical management capabilities. Aetna Health Insurance was developed in 1853 and today serves 14.8 million medical members. Aetna is the first national and full-service health-insurer to offer consumer-directed healthcare products (Aetna, n.d). Today, Aetna is one of the nation’s leading health insurance companies which providers top products covering dental...
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...Organizational Strategy Mid-Term 1. What is Strategy? Strategy simply put is long term goal of an organization that you base all business functions around. Your strategy what gives you a form of differentiation between you and your competitors? A strategy is the one thing that needs to stay consistent throughout all business decisions. The business world is always changing, so strategies that focus on positioning could quickly become irrelevant once the industry has shifted. It’s the underlying concept behind a position that should be utilized as your strategy. While all companies strive to increase profits, and shareholder value, that is not a strategy, it is a “constraint”. Those are requirements for a business. A strategy is the way you can increase your organizations value in terms other then financial. According to Katsuhiko Shimizu, a company’s strategy is a “plan for winning the business war”. He says that you can “win” this continuous battle by “attracting more customers then your competitors do”. He thinks that competition should be at the heart of strategy. When customers are shopping for various goods or services, the factors that contribute to the deciding factors are based on where your goods or service lie in comparison of your competitors. In an industry offering very similar commodities, you have to work extra hard on sustaining a competitive advantage. Since most temporary advantages can easily be duplicated, a company has to align...
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...The company, Aetna is an American managed health care company. The company began in 1853 in Hartford, CT where the first president of Aetna was Eliphalet A. Bulkeley. In Sicily there was a volcano called Mt. Etna which is what the company is named after. It was in 1861 that Aetna started offering life insurance policies. The Civil War was happening and many people were interested, so Aetna's business started to rise. In 1899 Aetna was one of the first companies to not only have stock insurance, but also go into the health insurance business. It was not until 1907 that they hired their first home office female employee. In 1912 many people who were insured by Aetna lost their lives on the titanic which resulted in Aetna losing many of their...
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...Understanding Aetna Medicare Supplements Aetna Inc. controls subsidiary insurance companies that go by the brand name Aetna. The Medicare Supplement Insurance plans from this particular brand are insured by Aetna Health and Life Insurance Company. The big question is: what are these Medical supplement plans? How do they work? Who qualifies to enroll? What are the best options of Medicare supplement plans? Why do you need to enroll for the Medicare supplementary plans? When should I apply for the Medicare supplementary plans? Here is a dissemination of all the answers to these questions. What are Medicare supplementary plans? Medicare supplement plans, also commonly referred to as Medigap Insurance Policies, are designed to complement the Original Medicare Plan. If your Medicare Plan covers about 80% of your medical expenses, the Medicare supplement plans will go an extra mile in covering a certain percentage of the remaining 20% depending on the kind of Aetna Medicare supplement plan that you purchase from Aetna. The Medicare supplement plan will cover for copayments, coinsurance, yearly deductibles, and medical treatment costs that you incurred while outside the U.S. There is a difference between a Medigap Insurance policy and a Medicare Advantage Plan. The latter...
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...Stayer University November 4, 2012 Aetna insurance company was founded in 1953 in Hartford, Connecticut and is one of the nation’s leading diversified health care benefits companies serving approximately 37.2 million people (17.5 million medical members, 14.2 million dental members and 10.9 million pharmacy members, some of whom fall into more than one category (Aetna, 2012). Aetna provides benefits through employers in all 50 states, with products and services targeted specifically to small, mid-sized and large multi-site national employers, individuals, college students, part-time and hourly workers, and government employees, and the community at large. Aetna also serves individuals and Medicare and Medicaid beneficiaries in certain markets. Aetna’s 2011 revenue was $33.61 billion. Aetna’s mission, values and goals are expressed through The Aetna Way. The Aetna Way, comprising encompasses a shared sense of purpose through integrity, doing the right thing for the right reason; excellence by striving to deliver the highest quality and value possible through simple, easy and relevant solutions; caring by listening to and respecting customers and each other in order act with insight, understanding and compassion; and inspiring each other to explore ideas that can make the world a better place. Aetna’s vision is to earn the distinction, financially and by reputation, of being the preferred benefits company in all aspects of our business. Aetna also strives to be the industry leader...
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...Aetna Recruiting and Selection Aetna’s focus on corporate responsibility is evident in everything they do, from adherence to strict ethical standards to longstanding support of the communities where they do business. Aetna has a clear track record for social responsibility that starts with their member-focused mission statement and set of values and culminates in responsible business policies and practices. Aetna recognize the impact and importance of diversity in all aspects of their business, workforce, customers, suppliers, networks of health care professionals, in their products and services and through their contributions to the communities they serve. It’s part of the Aetna way of doing business. Aetna Recruiting Policy Aetna provides leadership relating to recruiting staff, including sourcing strategies, assessment and closure practices. She/he determines broad recruitment direction and strategy for all business segments. Aetna directs services and functions that support Talent Acquisition operations. Aetna also develops and manages policy, process and practices for recruiting team. The projects determine broad recruitment direction and strategy for assigned business segments. The Recruiting Methods Being hired at Aetna has several steps. Here's what to expect when you apply for a job at Aetna. When applying online the job openings are posted on a secure website. There, you can search for jobs and read job descriptions. You also can submit a resume and apply for...
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...2013 Marcel Nzeukou In this paper I will discuss the business research process regarding the company I work for Aetna Inc., a health insurance company. I’ve been working in the health insurance field for some time now, and I find it rewarding being able to assist my clients with their health insurance claims. I will summarize the research process within Aetna and how that process applies to its daily functions. The business research process usually beings by looking at the market and/or industry. The reason this is done is to determine if whether or not there is an opportunity for business to be establish within a target market. Aetna was established in 1850 as “an Annuity Fund to sell life insurance” (Aetna, Inc.), established out of Hartford, Connecticut they were one the first insurance companies in the area. In those times there was an obvious need for insurance companies, and there were relatively few established health insurance companies. Since that time Aetna has committed itself to providing access to cost-effective health care of the highest standards. They strive to protect their clients against health-related risks and help them achieve both good health and financial security. Business research as defined by Cooper & Schindler,” is a systematic inquiry that provides information to guide managerial decisions”. This definition can be applied to Aetna Inc., as business decisions must be made on a day by day basis when it comes to dealing with each individual client...
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...RUNNING HEAD: AETNA MARKETING STRATEGY 1 “Aetna Marketing Strategy” Tara Brown Professor Charmaine Rhames HSA 305-Health Services Marketing April 29, 2013 This research was conducted and studied by Professor Rhames. AETNA MARKETING STRATEGY 2 Abstract This paper describes the health care system and the role of marketing. It analyzes the competitive environment of a health services organization. It identifies a course of action which allow strategic marketing success. It outlines its strategy on Aetna to determine the utilization of its products and services. The marketing strategy and the strategy for Aetna is outlined. The recommendation process is to list at least three separate ways in shaping the buying decisions of its customers. AETNA MARKETING STRATEGY 3 In 1850, Aetna Insurance Company formed an Annuity Fund to sell life insurance. The Annuity department detached from Aetna Insurance and...
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...Aetna was founded in 1853 in Hartford Connecticut and is one of the nation’s leading providers of healthcare, dental, pharmacy, group life, and disability insurance, and employee benefits (Aetna, 2013). One of Aetna’s related name in the state of Florida is Aetna Health Inc. Aetna provides innovative products and services which include: a broad range of insurance and employee benefits products, they were the first national full-service health insurer to offer a consumer-directed health plan, they continue to lead the way with their full line of consumer-directed health care products and they offer a wide array of programs and services that help control rising employee benefits cost while striving to improve the quality of health care, such as case management; disease management and safety programs, integrated medical, dental, pharmaceutical, behavioral health and disability information (Aetna, 2013). They also provide its members with access to convenient tools and easy-to-understand information that can help them make better-informed decisions about their health and protect their faineances against health related risk. I was able to locate Aetna’s 2011 annual report, financial report to shareholders online. It starts with the Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) which shows an overview of earnings, cash flows and significant developments for the last three years and an outlook for 2012 (Aetna, 2013). Between 2009 and 2011...
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...Strayer University Case Study 2 Professor Stephens Aetna Insurance Aetna Insurance is a health care insurance out of Hartford, CT; according to Aetna it has 2.2 Million medical members, 14.145 million dental members and 14.159 pharmacy members. It is a very well-known company throughout the US. Also “Aetna provides benefits through employers in all 50 states, with products and services targeted specifically to small, mid-sized and large multi-site national employers”. (Kirk, 2009) Aetna is one of the leading health care companies. The last thing a big company with millions of members need is a data breach case. But unfortunately “On May 28, 2009, Aetna Insurance contacted 65,000 users to let them know that their personal data may have been compromised”. (Kirk, 2009) After tons of emails sent out the customers asking for their personal email, Aetna was finally alerted that something was going wrong. This would be a 2nd data lost incident, after an employee laptop was stolen back in 2006. According to About.com Business Security, “Although the data theft took place between June 2004 and October 2007, On May 1, 2009, LexisNexis disclosed a data breach to 32,000 customers”. (Kirk, 2009) As many scammers seem to do the thefts set up fake post office boxes, causing an investigation for the USPS. Scammers are usually smart and seem to find a great way to get around the system and began to hack, as far as Aetna case the scammers retrieved the customer’s emails from the website...
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...Inside the October 2013 Issue of Parents Magazine, an ad for a life insurance company, Aetna and its app Carepass, asks the question “What is your Healthy?”(26) It is the first thing that stands out when the reader see the advertisement. The reader might begins to wonder what the ad means by the answer, “downward facing dog.”(26) Even if the reader knows nothing about yoga, it could easily be figured out by the depiction of the woman performing a yoga move in her cold, colorless, barren, room with only herself and her loving dog. In contrasting colors, an illustration of the app is promoted on a smart phone and tablet. Alongside the illustration, the ad states, “Whatever your healthy is, Aetna can help you get there.”(26) The ad is trying to target people who are health conscious and need guidance in achieving those goals. One would presumably think the ad is trying to target women in their thirties to mid forties. Men in general are too pompous to think they need help achieving these goals, but as women get older, there is more pressure to stay fit and young looking. Societal pressures can make women feel self-conscious about their appearance and this app takes advantage of that by giving you a plan to achieve these ideals. The creator of Carepass is aware that Americans are unhealthy, yet health conscious, and is here to help with this problem. In proposing a solution to a health conscious society, by creating an app to assist in the journey to become a healthier individual...
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...Transforming ATena heath care companies into high performance culture GM591 Leader ship and organizational behavior instructor : Bob Bustretsky ,Ph.D Email : carolinebabiker@yahoo.com August ,26,2008 Introduction Aetna Inc. is a diversified healthcare benefits company as well as one of the largest managed care companies in the U.S. It offers traditional and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life, and disability plans, and medical and healthcare management services. Among its historical highlights: It insured the Manhattan Project and also the lives of the first seven American astronauts in 1963.Aetna and its employees know that business success and community success are inseparable. Aetna carries with it a legacy of civic responsibility and an ingrained culture of caring deeply. Aetna’s approach to philanthropy is grounded in the philosophy that a prosperous economy has as its foundation a stable society. Aetna was the corporation reviewed in my OCI paper. Aetna has a great diversity culture . It have difficulties with innovation in their culture . They must use better technology to provide greater customer service and feed back . Training their workers on how to organize their customer...
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...The $5.6 billion Aetna-Coventry Health Care merger is the biggest in the health care sector since President Barack Obama enacted the reform law in March 2010. The deal will give Aetna, the third-largest health insurer in the U.S., a big increase in Medicare and Medicaid customers, including poor elderly people on both programs, and in the number of people who buy insurance on their own or get coverage from small businesses. Aetna will gain 5 million new customers when the merger is complete and stands to get even more in the near future. Health insurance companies, hospitals and other players are merging into bigger entities in hopes of restraining their own costs and grabbing larger shares of the markets as they are reshaped by health care reform. The health insurance industry is undergoing a transformation as a result of the health care reform law. Twenty-five million people will buy health insurance on the law's regulated "exchange" marketplaces in the states, according to the Congressional Budget Office. Many of those small businesses and people who don't receive health benefits from their jobs will get federal tax credits. Medicaid will also add 11 million poor people and states are expected to contract with private health insurance companies to cover them. In addition to boosting its Medicare and Medicaid business, the merger also gives Aetna better access to the "lower end" of the health insurance market -- people who will switch between Medicaid, individual insurance...
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...SWOT Analysis of Anthem Inc (ANTM) & Aetna (AET) SWOT Analysis of Anthem Inc (ANTM): • Strengths Strong free cash flow: Anthem has the free cash flow that provides resources to the company for expanding and developing new projects. Skilled Workforce: The company is investing substantial resource to train and motive their employees through the means of training and other learning programs. Satisfactory returns: The company is somewhat successful in the implementation of its new and current projects due to which it has made decent returns on capital expenditure by structuring new revenue branches. • Weakness Profits: The present net income proportion and the net contribution of the company is below the industry average due to which...
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