Management Paper 1
Even among the tightening labor market, Aetna Inc. intends to increase the incomes of its
lowest-paid workers, raising its minimum wage to $16 per hour. The tight market is the reason
they are raising wages. The increases primarily affect employees in customer service and
billing-related jobs. In addition, starting in 2016, Aetna will allow employees with household
incomes below a specific income threshold to choose a health care coverage with lower out-of-
pocket charges. This change could save a family as much as $4,000 a year. The company claims
that as many as 7,000 employees may be eligible for this coverage.
Aetna estimates that the combination of both changes will cost the company
approximately $14 million in 2015 and $25.5 million in 2016. Aetna Chief Executive Mark T.
