Aetna announced it is pulling out of Connecticut’s health insurance exchange after disagreements over pricing.
The Hartford, Conn.-based Aetna Life Insurance told the state’s insurance department that it was reluctantly withdrawing from the insurance marketplace for 2014. The exchange is preparing open enrollment this fall.
Health insurance exchanges are being created under President Obama’s health care reform law. Under the law, often called Obamacare, states will have an online exchange where Americans will be able to buy insurance plans, starting on Oct. 1.
Aetna’s senior actuary, Bruce Campbell, said the step was not taken lightly and was part of a “national review of our exchange strategy.”
Aetna and the Connecticut Insurance Department disagreed over how Aetna’s proposed rates were calculated.
The insurance company dropped out of Maryland’s exchange last week after the state pressed it to lower its proposed rates by up to 29%.
Aetna is the second health insurer to drop out of the Connecticut exchange, following ConnectiCare Benefit’s decision last month to withdraw its application to offer health insurance in the small-group market.
Kevin Counihan, CEO of Connecticut’s health exchange, said residents will still have a number of health care choices. With Aetna’s departure, three insurers will now offer individual coverage through Access Health CT.
Insurers bid on the exchanges and have different approaches to pricing. Those offering lower prices hope to potentially offset the cost of covering sick people by attracting more younger, healthier people. On the other hand, those with higher prices may be able to offset costs of ill customers with higher profits.
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