NEW YORK (Reuters) ? Aetna Inc said on Monday that the Centers for Medicare & Medicaid Services (CMS) had lifted a ban on the No. 3 health insurer's marketing and enrollment of new members to its Medicare plans for the elderly.
While Aetna has corrected the problems that led to the sanctions, Aetna's Medicare Prescription Drug Plans will not receive any new low income subsidy assignees from CMS at this time, the company said.
Low income subsidy members are free to make their own choice to enroll in Aetna products during the upcoming annual enrollment period.
Aetna said it would immediately resume marketing its Medicare Advantage and Prescription Drug Plan products and can begin enrolling beneficiaries beginning July 1.
"We have worked very hard to implement improvements to a number of areas that will further support beneficiary access to care, patient safety and compliance with CMS guidelines," Aetna Chief Executive Mark Bertolini said in a statement.
Earlier on Monday, Aetna said it had agreed to pay $290 million to acquire the Medicare supplement business of life and mortgage insurer Genworth Financial Inc, which will broaden its presence in the U.S. government health program for the elderly.
Aetna said the Genworth deal, expected to close in the fourth quarter, would be neutral to its 2012 earnings and add modestly after that.
CMS imposed the sanctions in April 2010, saying Aetna had failed to comply with requirements involving Medicare prescription drug plans, primarily tied to changes in the drugs covered by some plans from 2009 to 2010.
Aetna is not as reliant on Medicare plans as some rivals, such as Humana Inc, and its shares were flat in extended trading after the CMS announcement.
But Aetna said it views the Medicare business as a key strategic growth area for the company.
Aetna shares closed down 11 cents at $42.75 in regular Monday trading on the New York Stock Exchange.
(Reporting by Bill Berkrot)
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