Aetna’s exit deals a blow to Obamacare

Company drops ACA coverage in 11 states

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.

The third- largest health insurance company becomes the latest to pull back from the plans offered under the Affordable Care Act ( ACA) as it cites heavy losses.

Q WHAT DOES THIS MEAN FOR PATIENTS? A: The cuts affect 20% of Aetna’s 838,000 Obamacare participants, according to a Securities and Exchange Commission filing. The insurer is ending its Obamacare plans in 11 states: Arizona, Florida, Georgia, Illinois, Kentucky, Missouri, North Carolina, Ohio, Pennsylvania, South Carolina and Texas. Participants will be forced to sign up for other Obamacare plans or purchase individual insurance outside of the exchanges once open enrollment begins later this year. Aetna’s Obamacare members in Delaware, Iowa, Nebraska and Virginia will be unaffected.

Q WHY IS AETNA EXITING? A: The insurer blamed heavy losses for the move. The company suggested that too many sick peo--

ple are buying plans, not enough healthy people are paying premiums and the government isn’t making policy changes to fix it.

Q IS THIS LEGAL?

A: Yes. Insurers are not legally obligated to offer plans through the ACA exchanges.

Q ARE OTHERS DOING IT?

A: Yes. UnitedHealth Group recently ended most of its Obamacare exchanges plans for similar reasons.

Q DOES THIS MEAN FEWER PEOPLE WILL GET OBAMACARE INSURANCE? A: Not necessarily. But “this is concerning for the stability of the individual marketplace in many places,” said Marianne Udow- Phillips, director of the Center for Healthcare Research & Transformation at the University of Michigan.