Aetna to Exit Colorado

[HomeService]

What is the penalty if a state just decides not to participate in Medicaid anymore?

I dunno, but TX could be the first state to test the theory. Rick Perry keeps making noise about opting out of medicaid. I would love to see him try- see what happens.

 

[jbage007]

Aetna should just go ahead and withdraw from ITS OWN ARSE

 

[Norwayguy]

Haven't looked at a Health Policy in some time...Don't sell it....I just don't understand how a carrier can walk away without finding someone to pick up the business...It totaly defeats the transfer of Risk the individual purchased...The policy is Guaranteed Renewable correct meaning the policy can not be cancelled but allows the carrier to increase premiums....Can some one explain this to me.

 

[somarco]

I suppose there are jurisdictions that require a carrier to continue renewing business, but I have never heard of such.

Several small carriers have withdrawn from the market without finding a successor for their block. The largest one in recent memory was Mutual of Omaha. A few years ago they pulled out of the major med market on short notice. In at least a few states GR/UHC offered to pick up the orphans, subject to underwriting.

It was a real mess.

Guaranteed renewal does not require the carrier to honor contracts forever. They still have the ability to cancel a line of coverage for all policyholders in a state by serving notice.

 

[Crabcake Johnny]

Here's a statement found in almost every plan regarding guaranteed renewal:

Exceptions
The privilege of guaranteed renewability is forfeited when the insured uses fraudulent information on the application form. A policy can also be canceled if the insurance provider no longer offers the consumer's current plan, the company withdraws from the market, or the consumer moves outside of the coverage area.

 

[Norwayguy]

Here's a statement found in almost every plan regarding guaranteed renewal:

Exceptions
The privilege of guaranteed renewability is forfeited when the insured uses fraudulent information on the application form. A policy can also be canceled if the insurance provider no longer offers the consumer's current plan, the company withdraws from the market, or the consumer moves outside of the coverage area.

Gee...So close current folicy form...jack the rates to high heaven leaving only the sick people on the plan then say you no longer offer that plan...You can see why people would be angry about a practice like that.

 

[somarco]

Well I suppose they could go on PCIP.

Wait.

PCIP isn't available in CO. Even if it was, they would have to go without insurance for 6 months.

Yeah, govt health insurance really works well, doesn't it?

But CO does have a risk pool.

 

[Suis]

Could be his plan so he can say - see? all the carriers are walking away - now we'll just have to have the government take over. that #*)lc$#*

Correct. You see, Obama when he was making all his demands, forgot to think that he maybe should make it illegal to walk away- for these companies, he never planned on them exiting the market. He should have said, "If you are writing now, I will make you keep writing, illegal to walk away." But he didn't. So most will walk. A few companies will stay, we will have a monopoly which is easier to control for the government. Easier to control one or two companies- rather than hundreds.

 

[AndreaSti]

Could be his plan so he can say - see? all the carriers are walking away - now we'll just have to have the government take over. that #*)lc$#*

Tell us something we already don't know.