Large Insurers Start Jumping Ship

Drawing closer every minute is the monumental start date of the state insurance marketplace, which is one of the main features to Obamacare. Starting October 1st, people can go onto the marketplace and begin enrolling in health plans. However, for a few big name insurers, there is too much unknown risk associated with the marketplaces. Aetna, United Healthcare, and Cigna have started calling it quits by pulling out of select state marketplaces.


“We believe it is critical that our plans not only be competitive, but also financially viable, in order to meet the long-term needs of the exchanges in which we choose to participate," said Aetna after pulling out of the New York Marketplace. Aetna submitted enrollment materials to have their plans offered on 14 different state marketplaces for October 1st. Since then the company has withdrawn from 5 states including Connecticut, Georgia, Maryland, New York, and Ohio.

Aetna isn’t the only insurance carrier limiting their exposure, United Healthcare and Cigna are also following suit. According to CNN, United Healthcare spokesman Tyler Mason said “[We] see 2014 as just the very start of the exchange markets.” This does not mean that United Healthcare will stop selling insurance, but you will not find them on the marketplaces right away. As for Cigna, they plan to target 5 key markets where they currently write 80% of their individual business.

Embracing the marketplace is Blue Cross Blue Shield licensed WellPoint, who find themselves fully integrated in 14 states. Furthermore, they plan to sell insurance off the marketplace with their own ‘private exchange’ that hopes to drive more people away from the federal marketplace. According to Fox, “research shows that by 2017, private exchange participation will approach public exchange enrollment levels,” eventually being responsible for insuring more Americans than the federal exchange.