Aetna latest out of Ind. individual health market - Why? Not *enough* profit

[underpants]

The nation's third-largest health insurance company is the latest to leave the individual policy market in Indiana in another sign of diminishing competition to benefit consumers who purchase policies through a state insurance exchange under the federal health care overhaul.

Aetna spokesman Scot Roskelly said Wednesday the carrier currently has only 700 individual health insurance policies in Indiana, making up only a small fraction of the market, and will remain in other sectors, including small group coverage.

"The administrative costs of overseeing just 700 members are relatively high," Roskelly said.

However, Crosson, in her letter, said Aetna was leaving the Indiana individual market over a rule in the federal health care overhaul that insurers essentially must dedicate 80 percent of the premiums they collect to medical care. Anything less than 80 percent would be paid as rebates to policyholders the following year.

http://www.businessweek.com/ap/financialnews/D9OSRI400.htm

Later in the article a consumer advocate is quoted as saying that Aetna is "not a small player" and the article says that 200,000 people in Indiana have individual policies... 700 is less than 1/2 a percent - that is a small player. Oh and 875,000 people in Indiana have no coverage at all.

"competition" :eyes: it doesn't appear that competition has done much to lower health care costs in Indiana or elsewhere.

[proud2BlibKansan]

1. My parents had Aetna and it sucked

One of the worst companies I've ever dealt with. Good riddance.

[xchrom]

2. recommend

[mythology]

3. This seems like a good news bad news thing

Yes it's bad that the competing number of companies has been reduced. But it does show that there are teeth in the health care reform act to force insurance companies to put a higher percentage of premiums toward covering people.

Granted, yes single payer would obviously be far more effective, but this is a start.