Last year, Aetna announced it would cease providing insurance in 11 states. Then in April, Aetna said that it would leave Virginia and Iowa, leaving just a few states with Aetna coverage. Now, Aetna has announced that it will leave Obamacare altogether, citing cost as the major factor.
According to Bloomberg, “Aetna had indicated it might pull out earlier this month, when Chief Financial Officer Shawn Guertin said the company would take steps to limit its financial losses in the program. Aetna has said it expects to lose more than $200 million on individual health plans this year in the four states where it’s still selling Affordable Care Act plans.”
As has been the case with other insurers like Humana, who have left the healthcare system, Aetna has been derailed by the dysfunction of Obamacare: the amount of Obamacare enrollees has been far fewer than originally projected (off by nearly 50%!) and those who have signed up have been more ill than expected.
The recent enrollment period was abysmal. “A total of 9.2 million Americans signed up for plans sold on HealthCare.gov, which serves 39 states, by the close of open enrollment. That’s about 400,000 people fewer than had signed up last year.”
It’s clear that Obamacare has been a catastrophic financial failure, so it’s no wonder that insurers have continued to flee the system. It’s damage to the economy over the last few years has been brutal and yet Obamacare stalwarts continue to blame everyone else except themselves and a poorly written, poorly executed law. How to fix the irrevocable damage remains to be seen.