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Obamacare will get worse without risk adjustment fix, Aetna CEO says

Published 10/27/2016, 07:25 PM
Obamacare will get worse without risk adjustment fix, Aetna CEO says
AET
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  • This year's sharply higher premiums and more limited options are a "clarion call" for legislative changes to fix Obamacare, Aetna (NYSE:AET) CEO Mark Bertolini tells CNBC.
  • AET warned during its earnings conference call that losses from the company's Affordable Care Act individual insurance plans likely will continue, even after pulling out of the exchanges in 11 of the 15 states where it sells the plans.
  • "If we can fix risk adjustment, we can stabilize the market, but until that happens, it's only going to get worse," Bertolini says, referring to the part of the program intended to prohibit risk selection by insurers by transferring funds from plans with lower-risk enrollees to ones with higher-risk people.
  • The earliest AET could return to the program is 2019, more likely 2020, and only if operations improve, the CEO says.
  • Bertolini says a cheaper alternative to Obamacare would have been to extend Medicare down to chronically ill people who are older than 55, as well as expand Medicaid, since the two programs already had risk adjustment mechanisms with solid systems to track eligibility and enrollment.

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