Aetna Pulling Back From Obamacare

[Mark Hunts FIST]

http://www.npr.org/sections/health-...major-insurers-in-pulling-back-from-obamacare



"Insurance giant Aetna will stop selling health insurance through most of the exchanges created by the Affordable Care Act in 2017 because the company said it is losing money in many of those markets.

On Monday, Aetna said it will sell individual insurance policies in only 242 counties, down almost 70 percent from 778 this year."

"But Aetna, which lost $430 million on the Obamacare plans in the first half of the year, said it may re-enter the markets in the future."

"The Department of Health and Human Services has argued that companies have themselves to blame because they set premiums too low."

~~~~~
Obamacare is still in its infancy and already falling apart

 

[Hans Gruber]

http://www.npr.org/sections/health-...major-insurers-in-pulling-back-from-obamacare



"Insurance giant Aetna will stop selling health insurance through most of the exchanges created by the Affordable Care Act in 2017 because the company said it is losing money in many of those markets.

On Monday, Aetna said it will sell individual insurance policies in only 242 counties, down almost 70 percent from 778 this year."

"But Aetna, which lost $430 million on the Obamacare plans in the first half of the year, said it may re-enter the markets in the future."

"The Department of Health and Human Services has argued that companies have themselves to blame because they set premiums too low."

~~~~~
Obamacare is still in its infancy and already falling apart

Humana just pulled back too (Down from offering it in around 1400 counties to only around 140 counties) Huge pullback

 

[djacobox372]

Political move by a company during an election year.

 

[Strychnine]

Political move by a company during an election year.

That's all it is. Obamacare was a sloppy wet bajowski to the entire insurance agency where it's mandatory they get paid. Now they want to complain that they're not making enough money? Get real!

The stock market is at record highs and they can't make any money? That's their problem.

They wanted a "Free market" and now they've got it.

Deal with it insurance companies, deal with it.

 

[ripskater]

Obamacare is gonna collapse at some point. And it's gonna be a mess for the next president to deal with.

The whole thing was sold on lies. Most who think like me knew Obamacare wasn't gonna live up to all the promises that Obama made.

 

[Mark Hunts FIST]

Political move by a company during an election year.

they lost 430 million this year in those areas. You do understand this is a business not a charity right?

 

[Mark Hunts FIST]

That's all it is. Obamacare was a sloppy wet bajowski to the entire insurance agency where it's mandatory they get paid. Now they want to complain that they're not making enough money? Get real!

The stock market is at record highs and they can't make any money? That's their problem.

They wanted a "Free market" and now they've got it.

Deal with it insurance companies, deal with it.

what least you're being honest unlike DJacobox. at one point the insurance companies were salivating over the new customers.He doesn't even realize that, thinks its a big conspiracy now.

 

[panamaican]

they lost 430 million this year in those areas. You do understand this is a business not a charity right?

I agree it's a business but this line from the article suggests some political grandstanding:

Aetna's announcement comes less than a month after the Justice Department sued to stop the company's planned merger with Humana, arguing that the combination would hurt competition.

When previously they have said:

In April, Bertolini called the marketplace plans "a good investment" because it would have cost the company far more than $430 million to try to attract that many customers.

So, they're definitely losing money but there seems to be more to it than just that.

 

[Mark Hunts FIST]

I agree it's a business but this line from the article suggests some political grandstanding:



When previously they have said:



So, they're definitely losing money but there seems to be more to it than just that.

possibly it was a scratch my back and I'll scratch yours scenario. Maybe Aetnas back started itching and realized the Govt. wasnt going to scratch it.

 

[Hans Gruber]

they lost 430 million this year in those areas. You do understand this is a business not a charity right?

They lost 200 million alone in the 2nd quarter this year.

"The company suggested that too many sick people are buying plans, not enough healthy people are paying premiums to make up for it and the government isn't making policy changes to fix it.

But the U.S. Department of Health and Human Services says that it has implemented new regulations to make the exchanges more appealing to insurers. For example, HHS says new rules make it more difficult for Americans to abuse the system by buying insurance when they need it and dropping it when they don't, which is illegal and extremely unprofitable for insurers."

 

[PolishHeadlock]

I just looked at their 10Q and they are showing $2,642MM Pretax Income YTD.

At this point last year they were at $2,628MM in Pretax


http://investor.aetna.com/phoenix.z...at01enhanced.1_rs=11&seccat01enhanced.1_rc=10

 

[m52nickerson]

they lost 430 million this year in those areas. You do understand this is a business not a charity right?

http://www.usatoday.com/story/money/2016/02/01/aetna-reports-higher-than-expected-profit/79629518/

They lost money in those area's yet company wide had record profits.

 

[Mark Hunts FIST]

http://www.usatoday.com/story/money/2016/02/01/aetna-reports-higher-than-expected-profit/79629518/

They lost money in those area's yet company wide had record profits.

I understand, but just pretend you had a nationwide business and in that Nationwide Business 40 states were profitable and 10 were not.
What business decision would you make?


Edit: I am not saying poor poor Aetna, how will they survive.

 

[Hans Gruber]

I agree it's a business but this line from the article suggests some political grandstanding:



When previously they have said:



So, they're definitely losing money but there seems to be more to it than just that.

I disagree on this one.

Quote:

"As a strong supporter of public exchanges as a means to meet the needs of the uninsured, we regret having to make this decision," Mark Bertolini, Aetna's chairman and CEO, said in a statement.

^^^^^
They were losing money big time and still say the above.

He is basically saying "we support this...but we lost our asses on it so we're pulling back"

 

[m52nickerson]

I understand, but just pretend you had a nationwide business and in that Nationwide Business 40 states were profitable and 10 were not.
What business decision would you make?

Edit: I am not saying poor poor Aetna, how will they survive.

It depends on the business. Health insurance should be looked at as a whole and as part of a national health care system. The business responsibility is to the whole of the nation in that regard.

 

[sickc0d3r]

Fuck Aetna. Maybe the answer is to consolidate the customer base into one single customer, or "payer" if you will.

 

[panamaican]

I disagree on this one.

Quote:

"As a strong supporter of public exchanges as a means to meet the needs of the uninsured, we regret having to make this decision," Mark Bertolini, Aetna's chairman and CEO, said in a statement.

^^^^^
They were losing money big time and still say the above

Yeah but the timing is too coincidental. In April they support it. They claim to support it in their pull out statement. But they actually pulled out shortly after the DOJ moves to block a corporate merger, less than a month. That short a pullout suggests that the timing is more related to the merger response. Not entirely related because they are clearly losing money on the plans but significantly so.

Humana pulls out then they announce a merger with Aetna. The DOJ questions the merger and Aetna pulls out.

Maybe I'm cynical here but it seems more like corporate strategy to put pressure on the fed to approve the merger.

The company isn't actually losing money, it's just losing money on Obamacare plans.

The company, however, reported higher-than-expected quarterly revenue and profit on Tuesday as memberships grew in its government business, under which it sells Medicare and Medicaid plans.

Aetna’s medical benefit ratio – the percent of premiums spent on claims – rose to 82.4% from 81.1% a year earlier as medical costs increased in the Obamacare business.

Its net profit rose 8% to $790.8 million, or $2.23 per share, in the quarter ended June 30.

http://fortune.com/2016/08/02/aetna-obamacare/

 

[Dolomite]

Wait - they lost $430M - or they projected to take in $430M and didn't?

 

[PolishHeadlock]

I understand, but just pretend you had a nationwide business and in that Nationwide Business 40 states were profitable and 10 were not.
What business decision would you make?


Edit: I am not saying poor poor Aetna, how will they survive.

It just seems a little questionable tbh. They say they lost $400m in 6 months but their income is slightly up. Where did the other boost in earnings come from?

We're they really projecting $400m in growth over 6 months?

 

[Cygnus A]

Obama care was setup to fail by the Republicans. It is unfortunate because something really needs to happen regarding healthcare in this country.