UPMC signs affiliation agreement with Aetna to expand health plan access in Pittsburgh

Aetna (NYSE: AET) and UPMC (University of Pittsburgh Medical Center) announced today that they have reached agreement on a contract that expands access to include all of UPMC's hospitals and affiliated physicians in Aetna's Western Pennsylvania network for the first time since 2001.

Under the agreement, which takes effect July 1, members of Aetna commercial plans will be able to receive covered services, at in-network rates, from the entire network of UPMC facilities and providers. Approximately 1,700 primary care and specialist physicians employed by UPMC also will join the Aetna network, bringing to nearly 2,900 the number of UPMC physicians that Aetna members can access. Aetna also plans to pursue and enhance contracts with an additional 2,500 private practice physicians who have admitting privileges at UPMC facilities.

This new agreement does not apply to members of Aetna's Medicare Advantage plans. Aetna's Medicare Advantage network will continue to offer access to some UPMC facilities and physicians.

"Aetna is excited to announce a new affiliation with UPMC, which expands access significantly for members of our commercial plans in the Pittsburgh area," said Patrick Young, president of Aetna's Pennsylvania market. "The addition of these facilities and doctors gives our members more choice and flexibility."

"UPMC is the preferred health care provider for individuals and businesses in the Pittsburgh area," said Joseph T. Chuba, vice president, payor contract services, UPMC. "This agreement benefits employers and subscribers throughout western Pennsylvania by enhancing choice and competition in the insurance market and ensures Aetna customers have access to the highest-quality, most cost-effective, patient-focused health care available in the region. UPMC's commercial contract with Aetna is another clear demonstration of the benefits we will see in this region from a more competitive health insurance marketplace. Employers and individual policyholders will have multiple health plans competing for their business."

Aetna provides health benefits to approximately 85,000 members in Western Pennsylvania. Those members have access to a contracted network that includes 65 hospitals and more than 8,200 primary care and specialist physicians.

Aetna also employs more than 600 people in Pittsburgh. The city is home to an operations center that processes claims and provides member services for more than 1.6 million Aetna commercial and Medicare members. The center handles more than 5,000 calls and processes more than 7,500 claims each day.