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A number of distressed clients called me because they saw announcements on the news that Aetna and United Healthcare (UHC) were pulling out of individual states and would not be offering health insurance anymore. It is true that Aetna and UHC are pulling out of some healthcare plans, but Aetna exits ACA NOT Medicare.
Aetna Exits ACA Not Medicare
Aetna individual plans are on the marketplace exchanges through the ACA (Affordable Care Act). ACA has nothing to do with Medicare, and Aetna and UHC, which are the largest Medicare plan providers, will continue to offer Medicare Supplement plans and Medicare Advantage plans in all the states. Aetna and UHC Medicare Part D and Medicare Part C plans will not be affected.
Why Are Aetna and UHC Pulling Out?
The plans that are on the exchanges are not inexpensive plans. They are loaded with all types of services. The pricing is also designed to transfer money from beneficiaries who have higher incomes to those who have lower incomes in the form of subsidies. That is why the majority of Americans are paying significantly more for less insurance. At the same time, the number of people on the exchange in health insurance plans are far less than the estimates the government initial provided. The numbers are low for two principle reasons. Fewer people are purchasing the product. Instead, they are accepting to pay the penalty. Second, the employer mandate was weakened and delayed each year by the president. The result is that fewer people were pushed onto the exchanges than anticipated. The overall result is that insurance companies who administer the ACA plans on the exchanges have consistently lost money each year. The shareholders and boards decided to stop losing money by pulling out.
This has no direct affect on Medicare and your individual plans, even if it is an Aetna or UHC Medicare Supplement plan or Medicare Advantage plan. Aetna exits ACA NOT Medicare.