Aetna Exits State Health Insurance Exchanges
One of the top 5 health insurance providers is rethinking which state’s exchanges they will participate in. Aetna filed applications in several states that include both state and federally managed exchanges. These states include Florida, Arizona, and Virginia, (federally managed exchanges) and Washington D.C. (state managed exchange)
In late August Aetna decided to pull out of another marketplace and made the decision not to sell insurance on New York’s individual health insurance exchange. This is the fifth state where Aetna has reversed their coverage decisions in recent weeks.
A month ago Aetna purchased Coventry, a company that specializes in individual insurance plans. Since the purchase, Aetna has withdrawn applications in Maryland, Ohio, Georgia, and Connecticut. Coventry withdrew applications in Tennessee, Georgia, and Maryland
Coventry filed applications in Florida, Iowa (Partnership), Kansas, Louisiana, Nebraska, North Carolina, Ohio, and Virginia (federally managed exchanges),
Coventry withdrew its applications in Georgia and Maryland when Aetna bowed out but it remains in Ohio. It also withdrew earlier this month from Tennessee.
According to Reuters Aetna representatives have said the company seeks to limits certain exposures through providing health insurance plans on the Health Insurance Exchange, however the company failed to provide specific details with regards to the decision.
Aetna spokeswoman Cynthia Michener said in a statement, “We believe it is critical that our plans not only be competitive, but also financially viable, in order to meet the long-term needs of the exchanges in which we choose to participate. In New York, as a result of our analysis, we reluctantly came to the conclusion to withdraw,”
Several other large insurance companies such as UnitedHealth Group Inc. and WellPoint Inc. are limiting their entries into the Health Insurance Exchange in several states while they wait and see how effective and efficient the exchanges operate. (Ultimately, if enough healthy individuals sign on to offset the costs of the less healthy new members.)