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America's third largest health insurer, Aetna Inc., has announced it will not sell insurance on New York's Obamacare health insurance exchange, the fifth state the company has pulled out of in the last few weeks.
The other states Aetna has opted out of for Obamacare insurance exchange participation are Maryland, Ohio, Georgia, and Connecticut.
"We believe it is critical that our plans not only be competitive, but also financially viable," said Aetna spokesperson Cynthia Michener. "On New York, as a result of our analysis, we reluctantly came to the conclusion to withdraw."
Obamacare's individual mandate requires all Americans to have health insurance or pay a penalty. Some health insurers are foregoing participation in the Obamacare exchanges due to costly mandates to provide a selection of services and a requirement to accept all individuals regardless of pre-existing conditions.
Originally posted by wrabbit2000
but but but.... they promised higher quality for lower prices and across wider coverage!
Aetna has withdrawn its application to sell individual health insurance plans through a public exchange after the state Insurance Department told the insurer its proposed rates were too high.
Originally posted by xuenchen
reply to post by BritofTexas
Insurance companies might be basing their rates on cost projections.
PPACA mandates that companies pay out 80% (?) of premium income (less admin costs) for care.
Any extra money gets 'refunded'.
Is this correct ?
But who gets to keep the 'refunds' when government subsidies and tax credits are involved ?
And who keeps the 'refunds' when employer policies are involved ?
edit on Aug-31-2013 by xuenchen because: (no reason given)
Before an insurer can sell health plans, the rates must be approved by state regulators at the Insurance Department. If the regulators deem the rates to be too high, the Insurance Department modifies them to a lower rate. In this case, Aetna did not accept the modified rates.