America’s third largest health insurer, Aetna Inc., has announced it will not sell insurance on New York’s Obamacare health insurance exchange, the fifth state the company has pulled out of in the last few weeks.
The other states Aetna has opted out of for Obamacare insurance exchange participation are Maryland, Ohio, Georgia, and Connecticut.
“We believe it is critical that our plans not only be competitive, but also financially viable,” said Aetna spokesperson Cynthia Michener. “On New York, as a result of our analysis, we reluctantly came to the conclusion to withdraw.”
Obamacare’s individual mandate requires all Americans to have health insurance or pay a penalty. Some health insurers are foregoing participation in the Obamacare exchanges due to costly mandates to provide a selection of services and a requirement to accept all individuals regardless of pre-existing conditions.
Aetna never intended to participate in California, and Anthem Blue Cross and United Health Group made a similar decision to steer clear of California’s Obamacare exchanges as well.