Aetna to Leave 600,000 In the Cold
Posted by Todd Fries | Filed under Health Insurance
Aetna’s home page encourages individuals and families to “choose and use your plan.” As the new year approaches, that slogan may change to “use and lose your plan.”
In 2010 Aetna, the third largest private health insurance company, intends to force more than 600,000 of its current customers to lose their health coverage by making plans cost prohibitive. Why? To raise the company’s profit margin.
The Huffington Post reported Friday that, though they made a profit in 2009, Aetna did not attain levels both executives and shareholders hoped for. Therefore, they are raising consumer costs for health care plans in 2010. As a result Aetna expects to lose up to 650,000 members from their national and group accounts.
“Aetna’s decision to downsize the number of clients in favor of higher premiums is, as one industry analyst told American Medical News, a ‘pretty candid’ admission,” reports Sam Stein, a Huffington Post contributor.
In spite of the health insurance industry’s fight to derail health care reform claiming an interest in managing consumer costs as the primary reason, moves such as Aetna’s prove they are not concerned with managing consumer costs or even providing health care. Says Stein, “the private health insurance industry is too consumed with the bottom line.”
This is not the first time Aetna has put its profit margin above the interests of its members, or its employees.
Aetna cut 625 jobs in November and 977 jobs last December. The insurance giant plans to make similar cuts in 2010, citing the down-turned economy, the likely passage of health care reform, and increasing medical costs as contributing causes.
It seems ironic that one of the largest and most prestigious health insurance providers will be responsible for a loss of health coverage for hundreds of thousands of people in the coming year.
A transcript of the conference call between Aetna officials and investors regarding this decision can be found at www.seekingalpha.com.
If you live in California and are currently insured with Aetna and concerned about experiencing a loss of coverage, or would simply like to explore other coverage options, contact Todd Fries at (323) 464-TODD (8633) or at toddshealthinsurance@gmail.com. Initial consultations are free.
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