THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Thursday, September 12, 1996 TAG: 9609120384
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
SOURCE: ASSOCIATED PRESS
DATELINE: NEW YORK LENGTH: 23 lines
The American Association of Retired Persons is replacing Prudential Insurance Co. of America as the provider of its health care insurance contract, valued at $4.5 billion annually.
AARP said Wednesday it is in discussions with three other companies to provide health insurance to the organization. About 5.7 million of its more than 30 million members are enrolled in the AARP's group health insurance program.
AARP's contract with Prudential expires at the end of 1997. Under the proposed contract, United HealthCare Corp., Metropolitan Life Insurance Co. and ITT Hartford Group would provide insurance for the organization.
Prudential said it will lose about 3,500 employees who were directly responsible for the AARP work. But AARP said it has won commitments from United HealthCare and ITT Hartford to employ those people. by CNB