Aetna, the third largest health insurer in the United States, has stopped offering individual health policies in Indiana, the fifth thus far in the state, according to an Evansville Courier & Press report.
The cessation is due to a rule in the new healthcare law that requires health insurers to spend 80 percent of the premiums they collect on medical care. The news report said if health insurers don't spend that 80 percent on medical care, they must return the amount spent under that figure back to their customers.
According to the repot, Aetna only has 700 individual health insurance policies in Indiana and makes only a small portion of the market. Aetna will still stay within small group coverage, but an Aetna spokesperson said the administrative cost of overseeing that small of a group is "relatively high."
Read the Evansville Courier & Press report on Aetna.
The Quiet Takeover: Insurers Buying Physicians and Hospitals
Leveling the Playing Field: 9 Tips to Receive Payment for Medical Claims Fairly and Quickly
The cessation is due to a rule in the new healthcare law that requires health insurers to spend 80 percent of the premiums they collect on medical care. The news report said if health insurers don't spend that 80 percent on medical care, they must return the amount spent under that figure back to their customers.
According to the repot, Aetna only has 700 individual health insurance policies in Indiana and makes only a small portion of the market. Aetna will still stay within small group coverage, but an Aetna spokesperson said the administrative cost of overseeing that small of a group is "relatively high."
Read the Evansville Courier & Press report on Aetna.
Related Articles on Health Insurers:
UPMC to County Council: No New Contract With HighmarkThe Quiet Takeover: Insurers Buying Physicians and Hospitals
Leveling the Playing Field: 9 Tips to Receive Payment for Medical Claims Fairly and Quickly