The Obama Administration is encouraging young adults to obtain coverage through health insurance marketplaces, which need healthy people to balance sicker ones in the risk pool. Why is this important? Keep reading.
Aetna projects over $300 million loss on ACA business and announced that it will stop selling in 11 of the 15 states where it currently offers individual insurance on the Affordable Care Act exchanges. – Aetna released its second-quarter earnings report and also announced it will not go forward with previous plans to expand its offerings on state health insurance exchanges. Aetna CEO Mark T. Bertolini said if the company cannot fix this aspect of its business then it will leave the exchanges.
Humana Plans to Scale Back ACA Business. – Humana is concerned about growing losses in its ACA business and “set aside about $208 million more in the second quarter to cover losses in” its ACA business. Humana said it plans to “scale back” its individual business for 2017, which means it will offer coverage in only 156 counties, compared to 1,351 in 2016, and it will sell healthcare plans through Affordable Care Act exchanges in 11 states, compared to 15 this year.
Obama Administration Sues to Prevent Mergers of Big Insurers – The Obama Administration is attempting to prevent the mergers of four large insurers. The Justice Department sued Anthem, Cigna, Aetna, and Humana to block their mergers, saying that they “would ‘drastically’ curb competition in the insurance industry,” and negatively impact options for consumers who purchase coverage through Affordable Care Act exchanges. (Finally, something on which Employee Benefit Advisors agrees with the Administration.) Aetna and Humana announced a plan to sell some of their assets with the aim of gaining regulatory approval for their proposed merger.
Employee Benefit Advisors provides employee benefits, tax-advantaged healthcare, compliance guidance for ACA and Health & Welfare DOL Audits, and PEO Advisory & Consulting Services. We can customize a wellness plan for your budget and culture.