Research Note: Aetna (CVS Health)
Company Profile
Aetna's journey began in 1853 in Hartford, Connecticut, initially established as a life insurance provider before strategically expanding into health insurance during the 1960s. A transformative moment came in 2018 when CVS Health acquired Aetna for $69 billion, creating one of the largest integrated healthcare companies in America. While maintaining its historical headquarters in Hartford, CT, the company now operates as a key subsidiary within the CVS Health ecosystem. The integration with CVS has enabled Aetna to combine traditional insurance services with direct healthcare delivery through CVS's retail footprint. This merger created a unique value proposition in the healthcare market, combining insurance coverage with immediate access to healthcare services through CVS's nationwide network of pharmacies and MinuteClinics.
Market
Aetna maintains a robust national presence, operating in 46 states plus Washington D.C., serving over 4.3 million Medicare Advantage members across 2,269 counties. In the competitive landscape, Aetna faces strong competition from industry giants like UnitedHealthcare, Blue Cross Blue Shield, Cigna, and Kaiser Permanente, while differentiating itself through its CVS Health integration. Their Medicare Advantage performance is particularly noteworthy, with 88% of members enrolled in plans rated 4 stars or higher for 2025. The company has demonstrated market adaptability, though recent strategic decisions have led to service area reductions in some markets. Their integrated approach with CVS Health has created unique market advantages, particularly in prescription drug coverage and retail health access.
Client Feedback
Customer feedback reflects Aetna's complex market position, with notable strengths in member experience and innovative service delivery through CVS integration. The company receives consistently positive feedback for its digital tools, telehealth options, and the practical benefits of CVS retail integration, including quarterly allowances and product discounts. However, client reviews also highlight areas for improvement, particularly regarding premium costs that run 6% above market averages and inconsistent customer service experiences. The integration of insurance coverage with CVS retail health services has generally been well-received, though some members report challenges with network limitations and claims processing times. Member satisfaction data shows above-average ratings in 2024-25, particularly in Medicare Advantage plans, where Aetna has achieved significant improvements in star ratings.
Bottom Line for CFOs
Evaluating Aetna requires careful consideration of their unique market position as a CVS Health subsidiary and their demonstrated commitment to service quality and innovation. Their financial stability, backed by CVS Health's resources, coupled with consistently high Medicare ratings (4.27 stars for 2025), positions them as a reliable partner for comprehensive healthcare coverage. The company's ongoing digital transformation and improved member experience metrics indicate positive operational momentum, though higher premium costs warrant careful cost-benefit analysis. CFOs should particularly note the strategic advantage of integrated healthcare delivery through CVS retail locations, which provides unique opportunities for cost management and improved healthcare access. While recent market adjustments suggest careful strategic planning, the company's overall trajectory and innovation in healthcare delivery make it a compelling option for organizations seeking comprehensive coverage solutions.
Short List: Yes
Aetna deserves serious consideration for corporate insurance shortlists due to several compelling factors that set it apart in the healthcare marketplace. The combination of financial stability through CVS Health backing and consistent above-average quality ratings provides a strong foundation for long-term partnership. Their integrated healthcare delivery model, leveraging CVS retail locations, creates unique opportunities for cost management and improved healthcare access. The company's commitment to digital innovation and service improvement is evidenced by rising satisfaction scores and enhanced member experiences. Their broad national presence, coupled with the ability to offer integrated pharmacy benefits through CVS, makes them a particularly attractive option for organizations seeking comprehensive healthcare solutions.