Aetna withdraws from Obamacare

Aetna, the nation’s third largest health insurer, announced recently the most significant departure yet from the marketplaces set up by US president Obama’s signature health care law. The company, citing USD430 million in losses selling insurance to individuals since January 2014, will slash its participation from 15 states to four, next year.

Aetna’s exit comes amid a string of announcements that large insurers are losing money selling their plans in the marketplaces, raising doubts about the stability and future of the business.

Chief executive Mark Bertolini said in a statement: “Providing affordable, high-quality health care options to consumers is not possible without a balanced risk pool. Fifty-five percent of our individual on-exchange membership is new in 2016, and in the second quarter we saw individuals in need of high-cost care represent an even larger share of our on-exchange population. This population dynamic, coupled with the current inadequate risk adjustment mechanism, results in substantial upward pressure on premiums and creates significant sustainability concerns.”

“As a strong supporter of public exchanges as a means to meet the needs of the uninsured, we regret having to make this decision,” he added. “The vast majority of payers have experienced continued financial stress within their individual public exchange business due to these forces.”