Aetna CEO: Pulling out of ObamaCare is still an option if the program doesn’t “settle down”
posted at 1:01 pm on February 8, 2014 by Erika Johnsen
Last month, Aetna’s CEO Mark Bertolini casually dropped the hint that his insurance company might have to consider ducking out of ObamaCare if the program doesn’t get its act together, especially in terms of providing more certainty for insurers (…the poor dears). That evidently got the administration’s attention, and Bertolini mentioned this week on CNBC that Obama officials have been in contact trying to figure out what it would take to keep Aetna in the system. I’d imagine that one of the biggest trending topics under discussion had to do with the report this week that the Obama administration is considering extending their belated “administrative fix” meant to smooth over their farcical “if you like your plan, you can keep it” lie and millions of Americans’ cancelled policies. In order to avoid pulling out or substantially raising prices, Bertolini mentioned, “We need to understand where we’re headed with any number of programs… are we going to be required to have people keep what they have for another year or more?”
There is so much uncertainty about Obamacare that Aetna, the U.S.’s third-largest insurance provider, may be forced to double its rates or opt out of the program, the company’s CEO, Mark Bertolini, told CNBC on Thursday.
What action Aetna will take is still up in the air, but the company doesn’t plan to set its 2015 Obamacare rates until May 15. Between now and then, though, Bertolini said he’s trying to get the necessary information from the Obama administration to properly price its insurance products.
“I think in the end analysis, pulling out is always the last resort,” Bertolini told “Closing Bell.”
“We don’t like to do that because we disenfranchise customers and we disappoint customers, so we always look at that as a last resort, but that is an option that we will pursue if we need to if the program doesn’t settle down; if we can’t get a good handle on the data and the less data we have, the more risk premium we need to put into our products and that means the prices are higher.”