Aetna is calling off its public insurance exchange expansion plans for next year, as it becomes the latest big insurer to cast doubt on the future of a key element of the Affordable Care Act.
The nation’s third largest insurer said Tuesday that significant challenges faced by the exchanges are forcing the company to withdraw expansion plans and evaluate future participation in the 15 states where it currently sells coverage.
Aetna was planning to expand to a few additional states like New Jersey and Indiana. The Hartford, Connecticut, insurer said earlier this year that it had lost more than $100 million on its exchange business last year, but company leaders said they thought the exchanges were still a good business opportunity.
The nation’s largest health insurer, UnitedHealth Group, has drastically cut its presence in the exchanges, and the Blue Cross-Blue Shield insurer Anthem also recently outlined problems with the still-new business. Several insurers say they have been struggling with higher-than-expected claims and a shortfall in government assistance, among other issues, since the exchanges opened for enrollment in the fall of 2013.
Aetna’s announcement comes nearly two weeks after federal regulators said they were suing to stop the insurer’s $34-billion acquisition of Medicare Advantage provider Humana.