Aetna jumping ship in DC market

Tuesday, July 14, 2015
 | 
Chris Woodward (OneNewsNow.com)

The nation's capital is losing an insurance company on its exchange. It's a trend consumers will likely see in other exchanges, says one health policy researcher.

According to The Washington Post, The Daily Caller and other news outlets, Aetna will no longer offer insurance plans on DC Health Link, aka the Washington, DC, health insurance change.

According to Ed Haislmaier, a senior research fellow in health policy studies for The Heritage Foundation, Aetna isn't the top insurer in DC in terms of enrollment. That would be the local Blue Cross healthcare provider. Regardless, Haislmaier says Aetna is a prominent insurer, one that has been "fairly disciplined" in its approach to the exchange markets.

Haislmaier

"There were a number of states, about four or five, back when it first started that looked at going into [the exchange] and in the end they pulled their application because the regulators didn't like the rates that they were going to charge," he recalls. "And I think they took the attitude that, Well, we're willing to try it out, but we're not willing to lose money at it."

Haislmaier acknowledges that the exchange market has been a small portion of business for a company like Aetna. "Most of what Aetna does is to provide services for large, employer self-insured plans and then also to sell to smaller and mid-size employers fully-insured group plans," he notes. 

Should we expect to see other insurance companies pulling out of exchanges? Haislmaier expects that will be the case.

"Between 2014 and 2015, we saw some insurers pull out because they had a bad experience in 2014," he explains. "We now see insurers pulling out for 2016 because of either their bad experience or [their decision that] it's insufficient to be worth their while. One in particular, Assurant, they stayed out in 2014. They went in 16 states in 2015 and now they're getting out of that entirely in 2016."

The open enrollment period to have health insurance in 2016 begins this November.

Comments

We moderate all reader comments, usually within 24 hours of posting (longer on weekends). Please limit your comment to 300 words or less and ensure it addresses the article - NOT another reader's comments. Comments that contain a link (URL), an inordinate number of words in ALL CAPS, rude remarks directed at other readers, or profanity/vulgarity will not be approved. More details

SIGN UP FOR OUR DAILY NEWS BRIEF

SUBSCRIBE

FEATURED PODCAST

VOTE IN OUR POLL

How do you feel about President Trump's call for 'patriotic education'?

CAST YOUR VOTE

GET PUSH NOTIFICATIONS

SUBSCRIBE

LATEST AP HEADLINES

Woman accused of sending ricin letter arrested
Deputies find 1 woman dead, 1 chained to bed at Texas home
UN chief: No UN support for reimposing Iran sanctions now
Arizona Senate race could impact confirmation of new justice
Tropical Storm Beta meandering toward Texas, Louisiana

LATEST FROM THE WEB

Antiracism: A new religion
Why aren’t we allowed to talk about George Soros’s plan to remake America?
The brave new world of coronavirus safetyism
Even if masks work in theory, they aren’t working in practice
Systemic racism? Make them prove it

CARTOON OF THE DAY

Cartoon of the Day
NEXT STORY
ObamaCare-inspired co-ops suffering debt fever

A policy expert is not surprised that a government audit finds nonprofit healthcare co-ops are deeply in debt.