In yet another blow to the Affordable Care Act (ACA), insurance giant Aetna announced that it is pulling out of 11 of the 15 states in which it offered coverage through the ACA exchanges. More commonly known as Obamacare, the ACA has been having a bad year in 2016 as care costs had exceeded the original expectations when the law was passed
Insurers are losing money
Aetna follows other large insurance companies such as UnitedHealth and Humana in determining that Obamacare is not a viable business for them to be engaged in. Aetna cited a $200 million loss in the second quarter of 2016 as a motivating factor to exit the business in most of the markets they were in.
The common issue among the insurers that have exited the ACA exchanges is that the pool of members in the exchange do not include enough healthy members to cover the medical costs of those with illness.
"Back when UnitedHealth was the only insurance company bailing out, it was easy to dismiss as just one company trying to boost its bottom line. But when all five big insurers are bleeding money, it's clear you've got bigger problems."— Bloomberg
Changes in the ACA are likely after the election
No matter who wins the 2016 election, it appears likely that there will be some modifications made to the ACA next year. It may only require some fine-tuning to make the plans more attractive to gain enough healthy subscribers to make the plans cost-effective, or it could spark a whole new debate about what kind of health care Americans are entitled to.