Aetna Quits Obamacare Markets In Virginia, A Month After Announcing Iowa Exit

May 03--Aetna Inc. continued its withdrawal from Obamacare markets, announcing Wednesday it will drop individual plans in Virginia next year.

The Hartford health insurer announced last month it will not sell individual plans eligible for Affordable Care Act subsidies in Iowa in 2018. Aetna said Tuesday, as it released its first-quarter financial results, that it will continue to evaluate its participation in the Affordable Care Act with the possibility it will reduce its presence in more markets in 2018.

Aetna expects to lose more than $200 million on its ACA exchange business this year despite "significantly reducing" its presence, it said Wednesday.

"Based on that financial risk and growing uncertainty in the marketplace, we will not offer on- or off-exchange individual plans in Virginia for 2018," it said. "We will communicate decisions on our remaining states as appropriate."

In addition to exchanges under the Affordable Care Act in Iowa and Virginia, Aetna participates in Delaware and Nebraska. As of March 31, it covered 255,000 individual commercial members, down from 964,000 in 2016.

Chief Executive Officer Mark Bertolini said Wednesday that with a Republican Congress deadlocked over efforts to repeal the Affordable Care Act, lawmakers should instead turn to a long-overdue fix.

Obamacare is the first piece of major social legislation enacted without bipartisan support. It also is the first significant law to not be updated annually, he said.

"No piece of major social legislation has ever had that happen," Bertolini said at the Fortune Brainstorm Health conference.

Without a fix, "it is going to continue to deteriorate," he said.

High health care deductibles are imposed because costs are socialized across the entire population, Bertolini said. "That doesn't work," he said.

He suggested a reinsurance pool that would bear some of the costs and provide stability to the insurance pool.

"We put government in the business of administering health care. That isn't working," Bertolini said.

Bertolini has long criticized Obamacare's treatment of insurance risk pools, saying that rising rates are forcing healthy patients out and leaving insurers with sicker customers that lead to even higher rates.

He cited a statement by health insurer Medica that it may quit ACA markets in Iowa next year without help from state or federal officials.

Medica said it is examining the potential of limited offerings, but its ability to stay in the Iowa insurance market "in any capacity is in question at this point."

Aetna announced last month it will not sell individual plans eligible for Obamacare subsidies in Iowa next year. If Medica leaves, "there will be nobody in Iowa with coverage," Bertolini said.

He said a fix could draw bipartisan support.

"I think, and I've offered this insight, if we have leaders in Congress who say, 'You know what? We can't repeal it, we're going to fix it and we need your help,' I think you have people come across the aisle on the Democratic side and make it bipartisan."

The Affordable Care Act was signed into law by President Barack Obama in March 2010. House Republicans have frequently introduced legislation to repeal the law, but were blocked by Senate rules and Obama's threatened veto.

But beginning this year, Republicans had majorities in the Senate and House and a Republican president. Still, GOP lawmakers pulled repeal-and-replace legislation in March due to opposition from moderate and conservative Republicans.

Bertolini has supported the Affordable Care Act. He said in February that despite the best intentions of Washington and industry, "millions of Americans remain uninsured."

Aetna lost $450 million selling individual policies last year, including those sold through Obamacare exchanges.

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