Aetna buys Medicaid firm

NEWS IN BRIEF — Posted June 18, 2007

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Aetna announced on May 24 that it had paid $535 million to acquire Schaller Anderson, a privately held, Phoenix-based Medicaid managed care company.

Schaller Anderson operates Medicaid managed care plans in Arizona, California, Delaware, Maine, Maryland, Missouri, New Hampshire and Texas. One of the firm's founders, Don Schaller, MD, had started Arizona's current Medicaid program.

In Delaware and Missouri, Schaller Anderson also operates non-Medicaid HMOs. Aetna and Schaller Anderson jointly made a successful bid to handle HMO coverage for Delaware's state employees, a contract scheduled to begin in July.

Upon the deal's closure, expected later this year, Aetna's Medicaid managed care business will be based at Schaller Anderson's Phoenix offices.

Note: This item originally appeared at

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