by Katherine Restrepo
Director of Health Care Policy, John Locke Foundation
Aetna, America’s third-largest health insurer, is backing out of 70% of its Obamacare exchange business. The carrier cited that within the first two quarters of 2016, it has suffered losses amounting to $200 million.
A big reason why Aetna and other insurers are exiting the federal health law’s exchanges is because its infrastructure and regulatory parameters are simply unsustainable – even with government subsidies flowing their way. And, not enough young and healthy people are signing up to balance the insurers’ risk pools.
Aetna’s announcement means that its 94,000 non-group policyholders in North Carolina will have to rely primarily on Blue Cross and Blue Shield as their lone insurance option come 2017. Cigna plans to enter the exchange market in few counties in the Raleigh area.