Aetna Faces Obamacare Profitability Headwinds, Hints At Exiting More Exchanges in 2018 

Insurer created a premium deficiency reserve to buffer company from projected losses

Aetna, one of the largest health care insurers in the United States, is facing profitability headwinds from participating in the Affordable Care Act exchanges and has hinted that it may exit more in 2018.

In August of last year, Aetna announced it would limit its participation in the Obamacare exchanges in 2017, scaling back offering coverage from 778 to 242 counties after the company cited losses of more than $430 million since January 2014. The insurer said it would continue participating in four states, Delaware, Iowa, Nebraska, and Virginia.

Aetna released its first-quarter results from 2017 and reported a net loss of $381 million and adjusted earnings of $939 million. The insurer noted profitability issues associated with the Affordable Care Act, even going so far as to set aside a fund to buffer the company from projected losses….

Source: Aetna Faces Obamacare Profitability Headwinds, Hints At Exiting More Exchanges in 2018 – Washington Free Beacon

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: