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Strategies & Market Trends : Aetna ( aet) -- Ignore unavailable to you. Want to Upgrade?

To: Terry Maynard who wrote (87)	2/12/2000 11:50:00 AM
From: Logain Ablar	Read Replies (1) \| Respond to of 110

Terry: On the leglislation I meant the ability to sue the insurer or HMO. Right now the insurance is an employee benefit covered under the ERISA law which prohibits the individuals right to sue (there are exceptions like the state employee in CA where AET was hit for the $100M last year). This will change under new leglislation in Congress. It is now assured to pass this year. This will increase costs to the insurance industry. While they in turn will raise premiums there will be a lag. The nursing homes are a separate issue. In general many of the instances nursing home companies acquired homes and added on huge debt expecting the feds to continue to allow the homes to charge high fees. The brakes were put on 4 years ago. Eliminate the debt service charges and many of these homes will be viable. On a separate note I had a discussion this morning with another ex AET employee. We agreed all we have to do is raise $1Billion and line up Goldman and we can bid on AET. We'll wait of course until the CEO reprices HIS (oh I mean the employees) options. Tim