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Aetna announced Monday that due to grave financial losses, it will dramatically slash its participation in public insurance marketplaces set up by the Affordable Care Act. In 2017, Aetna will only offer insurance policies in 242 counties scattered across four states—that’s a nearly 70-percent decrease from its 2016 offerings in 778 counties across 15 states.
The deep cuts have largely been seen as a blow to the sustainability of the healthcare law, which has seen other big insurers also pull out, namely UnitedHealth group and Humana. But the explanation that Aetna was forced to scale back due to heavy profit cuts doesn’t square with previous statements by the company.
In April, Mark Bertolini, the chairman and chief executive of Aetna, told investors that the insurance giant anticipated losses and could weather them, even calling participation in the marketplaces during the rocky first years “a good investment.” And in a July 5 letter (PDF) to the Department of Justice, obtained by the Huffington Post by a Freedom of Information Act request, Bertolini explicitly threatened that Aetna would back out of the marketplace if the department tried to block its planned $37 billion merger with Humana.
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Source: Ars Technica – As promised, Aetna is pulling out of Obamacare after DOJ blocked its merger