Inova’s insurance joint venture exits Va. exchange as earnings rebound
Inova’s joint-venture health plan with Aetna is exiting the Virginia exchange marketplace in 2018 to stem losses that are dampening an otherwise strong rebound at the system.
As health insurance giant Aetna announced it would leave all Affordable Care Act exchanges in 2018, its joint venture with Inova—Innovation Health—is doing the same, according to Inova Chief Financial Officer Richard Magenheimer.
Magenheimer declined to reveal Innovation Health’s losses in the four years it offered insurance on the Virginia exchange. He simply said “it was not a good financial experience.”
Innovation Health covers about 200,000 people either with commercial health insurance or as a third-party administrator to self-insured employers.
Despite the exchange losses, Falls Church, Va.-based Inova had a comeback quarter.
Magenheimer said volumes at its new Women’s and Children’s Hospital on the main Fairfax, Va., campus helped boost first-quarter earnings, as did an increase in fee-for-service patients.
Inova saw a 4% increase in hospital admissions, a 4% increase in emergency admissions, a 5% increase in in-patient surgeries and a 6% gain in outpatient surgeries across its five hospitals in Northern Virginia.
Admission growth was strongest at Fairfax, where they increased to 12,404 in the quarter from 11,707 in the yearago period.