Aetna is one of the most influential health care companies in America. One of its recent business decisions regards the Obamacare plan and its visibly diminished popularity on the consumer’s market. Due to low sales in this sector, the giant insurer announced that it would no longer offer such health insuring plans in Virginia by the end of next year.
Aetna Will Continue to Sell Obamacare Plan in Only Two States
On Wednesday, Aetna announced a new step in its determination to leave Obamacare plan behind. The giant insurer appointed Virginia as the second state where it is going to exit the Affordable Care Act market. The first state was Iowa, and the company will continue to hold on to individual plans within only two states this year namely Nebraska and Delaware.
Mark Bertolini, the Chief Executive Officer at Aetna, seeks to avoid extended business risks that the health law is now posing under Trump administration. The current President of the United States confessed his discontent with the Affordable Care Act for several times. However, no decision was made regarding the direction of the new administration in the health industry. As such, insurers are recording great losses in the face of a dwindling fate regarding individual health plans.
Aetna Recorded Great Losses with Individual Health Packages from the Beginning
Aetna is no exception from this critical situation. Even though the company was proactive and reduced significant activities in this sector, predictions are pointing at over $200 million in lost earnings in 2017. The main cause of this financial issue was triggered mainly by individual products.
“… we will not offer on- or off-exchange individual plans in Virginia for 2018.”
Moreover, the company ran the data and identified each annual financial gap that the Obamacare plan caused in the budget. As such, the company started selling this health package in 2014. That year, they lost $100 million, followed by $130 million and $450 million for 2015 and 2016 respectively.
Image source: 1