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CEO: Aetna May Be Forced Out Of Obama-Care

From CNBC:

Aetna could be forced out of Obamacare: CEO

By: Matthew J. Belvedere | Wednesday, 22 Jan 2014

Aetna CEO Mark Bertolini told CNBC on Wednesday that Obamacare has failed to attract the uninsured, and he offered a scenario in which the insurance company could be forced to pull out of program.

The company will be submitting Obamacare rates for 2015 on May 15.

"Are they going to be double-digit [increases] or are we going to get beat up because they’re double-digit or are we just going to have to pull out of the program?" Bertolini asked in a "Squawk Box" interview from the World Economic Forum in Davos, Switzerland. "Those questions can’t be answered until we see the population we have today. And we really don’t have a good view on that."

In other words, if Aetna continues to only have the old and sick sign up, they will have to increase their premiums by double digits or pull out of Obama-Care altogether. (Lest we forget, Aetna has already left several state exchanges.)

He said that so far, Obamacare has just shifted people who were insured in the individual market to the public exchanges where they could get a better deal on a subsidy for coverage. "We see only 11 percent of the population is actually people that were firmly uninsured that are now insured. So [it] didn’t really eat into the uninsured population."

In fact, only 10% of the uninsured population has any intentions of signing up for Obama-Care, according to recent survey.

For Obamacare to work better, it needs more flexibility and choice of insurance programs, Bertolini said. "We need to make it a lot more simpler for people. There needs to be more choice. When you get more choice, you make it more of a market and you get more people in the program." …

Unfortunately, Obama-Care is all about limiting choice. For instance, Obama has outlawed ‘catastrophic plans,’ which are much cheaper, and therefore much more attractive to the young and uninsured.

This article was posted by Steve on Thursday, January 23rd, 2014. Comments are currently closed.

One Response to “CEO: Aetna May Be Forced Out Of Obama-Care”

  1. GetBackJack says:

    You asked for it, Aetna. Now take it like a man.

    Like a man who dropped the soap in a prison shower ..

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