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Obamacare Just Took A Huge Hit From Aetna

Obamacare is a political football as well as a nightmare for insurance companies. The healthcare system in the United States is a mess, and citizens are still trying to understand why it is a mess. Canada has an excellent government-funded healthcare program, and countries like Sweden, Denmark, Norway, and even the United Kingdom have healthcare systems that work for the people. In the United States, the healthcare system works for big businesses. President Obama made a promise that he would fix the U.S health care system while he was in office, and he came up with a plan that is affectionately known as “Obamacare.” Obamacare seemed to be dead on arrival, however. But Obama and his administration forced it back to life in order for him to say he did what he promised. Trump wants to repeal the plan, and just about every Republican on Capitol Hill agrees with him. Republicans agreeing with Trump is a rare event, but in the case of Obamacare, Trump is the lesser of two evils.

According to an article published by businessinsider.com, Aetna just announced that it would pull out of 70 percent of the counties where it offers Obamacare coverage. Aetna, one of the five largest health insurers in the country, said the $200 million loss every year was not worth handling Obamacare. Instead, Aetna will offer healthcare options through public exchanges in only 242 of the 778 counties where it does business. Those counties are in Nebraska, Delaware, Virginia and Iowa. The old plan offered coverage in 15 states. The bottom line is, insurance companies hate to lose money and the way Obamacare is structured they will continue to lose money. Obamacare is a risk pool that insurance companies don’t want or need. Most of the Obamacare patients are older, and that means more healthcare expense. Aetna and other insurance companies must have a more balanced consumer base. In other words, they want younger people that don’t need the medical attention that the baby boomers need.

The Aetna decision will have a big impact on people that were depending on Obamacare. Once again, the healthcare system in the U.S. is creating more health issues than solving them. Almost 1 million people had Aetna coverage in 2015, and now those people are left with no coverage.