If big insurers drop out, who steps in?
Minnesota’s own UnitedHealth just made headlines by announcing that it is dropping out of the pool of private companies that would offer individual policies in California. Aetna has also dropped out of the California market. Source: http://www.latimes.com/business/la-fi-unitedhealth-insure-calif-20130702,0,4370321.story
It’s not a tragedy for Californians. Both of those companies only had a combined 58,000 customers who can now seek new coverage in one of 13 Covered California providers. What’s apparent, however, is that private companies are dropping out of even lucrative markets such as California where they can’t create policies that keep their costs down and rates up. It’s the equivalent of taking their ball and going home, which in UnitedHealth’s case is employer-offered plans.
… Read more about: If big insurers drop out, who steps in? »