Long-Term Stability Of ACA In Doubt As Insurers Continue To Jump Ship
“The exchanges are a mess as they exist today,” says Aetna's CEO Mark Bertolini. The company is the latest insurer to announce it is pulling out of most markets.
Bloomberg:
Obamacare’s In Trouble As Insurers Tire Of Losing Money
Last November, when UnitedHealth Group said it expected to post big losses on its Obamacare policies in 2016, rivals such as Anthem and Aetna signaled their Affordable Care Act businesses were doing fine. The Obama administration used that as evidence to refute claims that systemic problems were brewing in its landmark insurance program. Now, there’s no denying it. The four biggest U.S. health insurers admit they’re each losing hundreds of millions of dollars on their Obamacare plans. Rather than expand coverage, many are pulling out of the exchanges that were set up by the ACA so people can shop for insurance plans, often with the help of government subsidies. (Tracer, 8/17)
The Hill:
Insurer Exit Darkens ObamaCare Picture
Aetna’s decision to pull back from ObamaCare is fueling new questions about the long-term viability of the Affordable Care Act (ACA). When United Healthcare announced in April that it was leaving most ObamaCare marketplaces in 2017, supporters of the law argued against drawing broad conclusions, calling it one company’s decision. (Sullivan, 8/16)
USA Today:
Aetna's Exit Deals Blow To Obamacare, Patients
Health insurer Aetna announced late Monday that it is dropping Obamacare insurance in 69% of the counties and 11 of 15 states where it currently offers plans. ... Here's what that means for patients, insurers, the ACA and the company's fight with the government over its effort to acquire Humana. (Bomey, 8/16)
The Fiscal Times:
With Aetna Pulling Out, Can Anything Save Obamacare?
The disclosure Monday that insurance giant Aetna will pull out of the Obamacare market next year in 11 of the 15 states it now serves poses a serious threat to the future of the program and raises anew the need for major reforms. ... Larry Levitt, a senior vice president of the Kaiser Family Foundation and a strong champion of the Affordable Care Act, said in a tweet today that the next Obamacare open enrollment period for 2017 will be key in determining the importance of Aetna’s stunning withdrawal from the program’s exchanges. (Pianin, 8/17)
Modern Healthcare:
Aetna Pullout Heightens Pressure For ACA Exchange Fixes As Elections Near
The startling withdrawal of Aetna from many Affordable Care Act exchanges has accelerated the search for ways to preserve competition in those markets. Options being considered include establishing government-run plans and requiring insurers to offer exchange products as a condition for participating in Medicare Advantage or Medicaid managed care—or as a concession for proceeding with proposed mergers. (Meyer, 8/16)
Morning Consult:
Report Suggests Medicare Advantage, Part D Policy Fixes Could Be Applied To ACA Exchanges
The insurance marketplaces created under the Affordable Care Act face some similar challenges that public insurance programs have faced as they’ve gotten off the ground. Steps that were taken to stabilize Medicare Advantage and Medicare Part D could be a starting point to stabilize the ACA insurance exchanges, a policy brief released Tuesday by the Robert Wood Johnson Foundation suggests. (McIntire, 8/16)
Politico Pro:
Obama Allies Cry Foul Over Aetna Snub
Obamacare backers are suspicious of the timing of Aetna’s decision to back out of most of the law’s insurance markets, suggesting the nation’s third largest carrier is trying to strong-arm the Obama administration into approving its controversial merger with another insurer. Aetna CEO Mark Bertolini dealt a big blow to Obamacare on Monday night, announcing the company will pull out next year from all but four of the 15 state online markets where it sells health plans. He cited unsustainable losses of $430 million since 2014. (Demko and Pradhan, 8/16)
