Aetna's departure from marketplace to drive up prices
(FOX 13) - There is bad news for anyone paying for their own health care.
Insurance company Aetna will stop providing individual plans in most states, including Florida, at the beginning of the new year. That’s going to make coverage more expensive across the board.
If you have Aetna insurance thru the Affordable Care Act Insurance Marketplace right now, you are covered until the new year.
Next year, Aetna says it’s reducing its participation from 15 to 4 states - and the company is not alone. United has also pulled out.
Bryan Rotella serves as general counsel to several doctors groups and is the affordable care act counsel for health care businesses. He says too many unhealthy people signing up has cost insurers so much that they're backing out, and fewer options for users means prices could rise anywhere from 17-60 percent.
“All of these carriers are pulling out because they're business people. Its bad risks and they're losing money; to the tune of $400,000,000 if you’re Aetna [and] hundreds and hundreds of millions of dollars if you’re United [Healthcare]… if there aren't any carriers, it’s the same thing as auto insurance. If there’s no State Farm, Geico and Progressive, the few people left can charge what they want to,” Rotella explained.
He says people will be more likely to take pay the penalty for having no insurance because it's likely to be less than buying it through the Affordable Care Act.