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Political Contributions and Related Activity Report

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Political Contributions and Related Activity Report Aetna PAC and Aetna Inc. Political contributions and related activity report 2008 AETNA PAC BOARD OF OFFICERS FEDERAL CONTRIBUTIONS COMMITTEE Last year, I joined Aetna as Senior Vice President, Government Affairs. One of the primary DIRECTORS - 2008 Steve Kelmar Charlie Iovino goals the Government Affairs team has this year is to educate legislators and the new Obama Mark Bertolini Chairman Vice President & Counsel, Administration about our company and the policy issues that affect our bottom line and ability President Senior Vice President, Government Affairs Federal Government Affairs to operate. We do this by meeting with Federal and State representatives and their staffs, through our employee-driven grassroots program, and through the Aetna Political Action Mary Claire Bonner Jonathan Topodas Steve Kelmar Committee—Aetna PAC. Segment Head, Regional Business Treasurer and Counsel Senior Vice President, Government Affairs Vice President & Counsel, Aetna PAC is a bipartisan political action committee, which allows eligible company employees William Casazza Federal Government Affairs Jonathan Topodas to have a voice with legislators on the Federal and State levels who make laws and policy that Senior Vice President, General Counsel Vice President & Counsel, have a direct impact on the way the company does business. Its purpose is to support candidates Tammy Preisner Federal Government Affairs for political office by collecting voluntary contributions from eligible Aetna employees. All Tom Kelly Assistant Treasurer & Administrator contributions are received and disbursed pursuant to our internal contribution guidelines Product Head, Schaller Anderson Manager, Government Affairs and in accordance with applicable election laws. STATE CONTRIBUTIONS COMMITTEE Steve Kelmar In January of 2008, Aetna’s Federal and State PACs started with a combined balance of Brooke Flaherty Senior Vice President, Government Affairs $307,685. During 2008, eligible Aetna Employees contributed an additional $472,705. Director, Government Affairs Throughout the year, the PACs disbursed $418,700 to Federal and State candidates, party Robert Mead (and other) committees and leadership PACs that share our company’s interests. As the Kris Frank Senior Vice President, enclosed statement of cash receipts and disbursements indicates, Aetna PAC began 2009 Vice President, State Government Affairs Strategic Marketing & Communications with $360,817 available for political disbursements. Steve Kelmar Felicia Norwood Also during 2008, Aetna Inc. contributed $185,831 in direct corporate contributions to state Senior Vice President, Government Affairs President, Active Health candidates and party committees in 12 states and the District of Columbia where such corporate contributions are permitted. Aetna is an active participant in the political process at all levels of government through Aetna PAC, corporate contributions and corporate political activity, including advocating our views before government bodies directly or indirectly through consultants, trade associations and various coalitions. This report details the political contributions and activity relating to Aetna PAC and Aetna Inc. Steve Kelmar Chairman, Aetna Inc. Political Action Commitee 1 Political contributions Political contribution process and policy Aetna PAC Management Process The Audit Committee of the Aetna Inc. Board of Directors annually reviews the Aetna Inc. sponsors a Political Action Committee (Aetna PAC) which is authorized to The Chairman, Treasurer, and Administrator Each contribution goes through a legal political contributions and political activities contribute to federal candidates, parties and committees, and to state candidates, of Aetna PAC are responsible for the approval process to ensure that Aetna PAC of Aetna PAC and Aetna Inc. and oversees parties and committees in most states; all administrative expenses are paid by Aetna Inc. day-to-day management of Aetna PAC. complies with federal and state campaign as specifically allowed by law. Aetna PAC is controlled by a Board of Directors (drawn from compliance with the overall policy, process These officers are responsible for the finance and related laws and the Aetna PAC various segments of the Company). Aetna PAC is managed by three principal officers (Chairman, and contributions criteria with respect to solicitation of contributions to and the By-Laws. The process for disbursing funds is Treasurer & Counsel and Administrator) and utilizes separate Contributions Committees to make such contributions or activity. disbursement of funds from Aetna PAC virtually the same whether the contribution state or federal disbursement decisions. Aetna PAC is governed by federal law (Federal Election consistent with state and federal laws, with is from Aetna PAC or Aetna Inc. corporate Campaign Act) and various state laws where Aetna PAC is registered to make state Aetna PAC and Aetna PAC-New York are political contributions. the contribution policies and criteria of the funds. Recommendations for supporting a audited annually. The results of that audit Aetna PAC By-Laws, and with the Aetna candidate or a committee are submitted and the Aetna PAC Annual Report are sent Aetna Inc. also sponsors separate but related state PACs in New York (Aetna PAC-New York) and PAC process applicable to such political from all areas of the Company and to the members of the Audit Committee of Michigan (Aetna PAC-Michigan) because those states require such separate registration. The contributions. frequently come from state or local company the Aetna Inc. Board of Directors. control and management of these two separate PACs is the same as Aetna PAC. Aetna PAC- personnel who work in government relations. New York is funded by corporate funds from Aetna Inc. subsidiaries as permitted by New York Contribution Policy & Criteria The recommendation is sent to the State or state law. Aetna PAC-Michigan is funded by employee contributions. The Contributions Committee is composed Federal Government Affairs Contributions Committee which meets in-person, by phone Corporate Contributions of state and federal government relations Contributions to candidates personnel. It considers a number of criteria or email to discuss and vote on such Aetna Inc. is permitted to contribute corporate dollars to state and local candidates in many, but matters. The approved recommendation is State candidates when making contribution decisions: the $346,781 not all states, and the company does so in part to better leverage the availability of Aetna PAC then reviewed by the in-house Aetna PAC dollars. In 2008, such corporate contributions were made in 12 states and the District of candidate’s understanding of and support Counsel and outside Legal Counsel, if Columbia. The Management of Aetna PAC (PAC Board, Officers and Committees) exercises the for the free enterprise system; the candidate’s necessary, for legal and campaign finance same oversight, managerial and operational control over Aetna Inc. corporate contributions need for Aetna PAC assistance; the presence law compliance purposes. When certified as and related activity as applicable to Aetna PAC. of Aetna employees, facilities or resources in the candidates district or state; the candidate’s “legal,” the paperwork is processed (by the demonstrated leadership or potential for PAC Administrator for Aetna PAC or by leadership; the candidate’s committee Corporate Accounting for corporate funds) assignments and seniority within Congress and a check is drawn and delivered. or state government; the candidate’s This same management oversight, political involvement with and position on issues Federal candidates affecting health care and related group contribution policy and contribution process $257,750 benefits; the likelihood of the candidate’s applies as well to corporate contributions election success; and recommendations by from Aetna Inc. State contributions include PAC and Corporate contributions. Aetna PAC members. 2 3 Related political activity Aetna utilizes multiple resources to Organization Total Dues / Portion Allocated to AETNA INC. POLITICAL ACTION COMMITTEE STATEMENT OF CASH RECEIPTS Payments Non-Deductible Lobbying advocate and advance its position on AND EXPENDITURES FOR THE YEAR 2008 public policy issues within the State America’s Health Insurance Plans $950,000 $190,000 and Federal political, legislative and Audited financial statements are available upon request. regulatory environments. To this end, Coalition for Affordable Quality Healthcare $550,000 $ 5,390 in 2008 Aetna spent $4,809,816 on The Business Roundtable $235,000 $108,357 Aetna PAC Aetna PAC Aetna state lobbying expenses and $2,438,697 Michigan New York PAC on federal lobbying expenses.1 Healthcare Leadership Council $200,000 $ 60,000 CASH baLANCE Insurance Federation of Pennsylvania $188,410 $ 32,000 Aetna does not make or engage in January 1, 2008 $ 7,900 $ 59,578 $ 240,207 independent political expenditure New Jersey Association of Health Plans $175,000 $ 28,000 activity as defined under federal New York Health Plan Association $133,088 $ 71,867 election law. RECEipTS Connecticut Association of Health Plans $103,048 $ 53,111 Employee contributions $ 12,080 $ __ $ 460,625 In 2008, Aetna Inc. also spent $90,000 Voided campaign contributions $ __ $ __ $ __ Texas Association of Health Plans $ 86,000 $ 25,800 on various partisan tax-exempt Refund of campaign contributions $ 500 $ __ $ 175 research and policy organizations. Florida Association of Health Plans
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