AETNA & COVENTRY Drop Out of Exchange

[AllenChicago]

Aetna's CEO has repeatedly stated that he would pull the company out of any given state exchange, if conditions turn unfavorable. Today (Wed 07/31/2013), he decided to do just that in Georgia.

Story: Feds 'working with' Georgia even as plans drop out of exchange | The Augusta Chronicle

-ac

 

[somarco]

I always thought the Aetna/Coventry presence on the exchange was suspect.

Even though Coventry has been overly aggressive (pricing AND underwriting) since they opened the GA market everyone felt they were using cash flow underwriting to hide actual losses.

Aetna never really got a foothold here and except for a very brief period 3 - 4 years ago, never were a factor.

Now that Aetna owns the Coventry block and have had a chance to look under the hood, I suspect they decided to pull out and take their chances by either riding out the existing block or just playing off exchange.