Aetna pulls Out of Individual Health Insurance Policies in Colorado as of August of 2012-Risk and Profit Algorithms At Work
Posted Feb 02 2011 6:40pm
Aetna began sending letters out this week so if you are an individual health insurance policy holder in Colorado, you have a little over a year left as policies will renew for one year only and August 1st of 2012 is the cut off date.
Now the company will still offer employer provided insurance along with specific group policies i.e. a union provided policy, that’s where the big money is usually made. When 2014 rolls around, Aetna will not be in any exchanged in the state and I wonder if this type of move will spread elsewhere with other carriers too? Last month Aetna took out re-insurance in the Caymans for coverage in case of expenses that could be out of their control to pay claims, i.e. a natural disaster, etc. but I think they also thought that it would look good for investors too.
The company no doubt is using their business intelligence algorithms to zero down on where the profits will be. BD
Aetna is pulling out of Colorado's individual health-insurance market, affecting 22,400 policyholders statewide.
The Hartford, Conn.-based insurance company sent a letter to Colorado agents saying it "could no longer meet the needs of its customers while remaining competitive in the individual health market."
The company began sending letters to policyholders on Tuesday notifying them of the change. Existing policies will renew for one more term, and the company will have no individual health policies in Colorado as of Aug. 1, 2012.
The change means less competition and likely higher premiums for customers, said Chris Davies of Choice Plus Insurance, 2629 Redwing Road, Fort Collins, who has about 100 Aetna policyholders.
Aetna was one of the lower-priced carriers, Davies said.
"They weren't dramatically lower but lower enough that people would go with them," she said.
Davies sent about 100 letters to her Aetna customers informing them of Aetna's decision.
The company will continue to offer large group, dental and life products, Aetna spokeswoman Anjie Coplin said in an e-mail to the Coloradoan.