Aetna backs out of Georgia health insurance exchange

Georgia Health Insurance exchange

Aetna and Coventry pull out of state health insurance exchange

Aetna, one of the largest health insurance providers in the U.S., has dropped out of Georgia’s health insurance exchange. The insurer is also taking its recently acquired subsidiary, Coventry, out of the state’s insurance exchange as well. With the two companies leaving the exchange, five insurers remain to offer coverage through the state’s exchange program. While the insurers will not be participating in the exchange, they will still be offering coverage beyond the confines of the program.

Federal law seeds uncertainty among insurers

Georgia Insurance Commissioner Ralph Hudgens suggests that the Affordable Care Act has created a great deal of uncertainty in the health insurance market. Insurers are showing concerns regarding the federal law and its various regulations, many of which are expected to place insurers under greater financial pressure and regulatory scrutiny. The law calls for the establishment of health insurance exchanges throughout the country, through which consumers are able to find affordable coverage. Insurers participating in these exchanges are required to adhere to certain standards concerning coverage options and costs.

Georgia Health InsuranceAetna pulls out of Maryland exchange

According to Aetna, participating in a health insurance exchange is not a step to be taken lightly. Recently, the insurer pulled out of the Maryland health insurance exchange. The move was sparked by the state intention to reduce the costs of coverage plans sold through its exchange. Aetna suggests that the state would not allow it to charge rates that would cover the costs of the plans it had offered and the insurer simply pulled its participation from the state’s program.

Financial pressure forcing insurers to evaluate the merits of exchanges

The financial pressure that the Affordable Care Act has been putting on health insurance providers has been a relatively problematic issue. Many insurers suggest that the financial aspects of the law will force them to charge more for coverage, effectively leading to a drastic increase in premiums throughout the U.S. Several states have, however, announced that rates for plans sold through their exchange programs would be significantly lower than what previous estimates had shown.

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