Aetna To Dump 600,000 Members

[Hissyspit]

http://www.ama-assn.org/amednews/2009/11/30/bisb1130.htm

Aetna prepares for loss of 600,000 members as it raises 2010 prices

Executives say the company can be more profitable by dropping some business -- the same decision the plan has made before.

By EMILY BERRY, amednews staff. Posted Nov. 30, 2009.

Back when it was the largest private health plan in the country, Aetna downsized its membership by millions but boosted profits during an overhaul of its business several years ago.

Now it looks to be making a similar -- but smaller -- move with a planned price increase for many of its customers in 2010.

The company figures it will lose between 600,000 and 650,000 members next year because of the price hikes.

- snip -

Laying out specific expected membership losses is "pretty candid," said David Gibbs, a retired health insurance industry consultant from San Luis Obispo, Calif. He worked for and consulted with health insurers, including Aetna, for 25 years, and most recently was with New Jersey-based Health Economics Consulting Group.

He said Aetna's decision comes from a system that encourages insurers to drive away sicker members -- a strategy not unique to one insurer. "They're running a business, and their obligation is a very singular one: to increase shareholder profits."

It's not unusual for executives to promise that profitability will take priority over membership growth. Some of Aetna's competitors are taking similar steps in 2010 and have done so in the past.

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[MercutioATC]

1. They did this with their federal employee plans.

80% premium hike this year.

I'm switching.

[jimshoes]

2. Well damn, that's the company

that the wife's company uses. Guess we'll be switching providers again. Seems like this is a every other year thing any more.

[Kansas Wyatt]

7. But but but at least you get to have the doctor of your own choice...

Provided they are on the new provider's list.
:sarcasm:

[Javaman]

3. Their market share dropped through the floor last quarter to the tune of 29%.

They have to make up the money someplace. And even though they claim to be devesting themselves of members, I bet a bunch of members are dumping their asses.

We did at my work. They were going to raise our rates sky high to fix their fuck ups.

Why do our lives need to be like this? why are we all held hostage via the health insurance corps? how is that freedom?

What a truly fucked up system.

[OneTenthofOnePercent]

4. Our company moved away from Aetna this year as well.

[SOS]

5. Hopefully their membership will someday reach zero

One less parasite.

[Veruca Salt]

6. The company I work for uses them

And though I didn't get a rate hike, the services offered with the plan for 2010 are crap compared to '09. That's only one complaint I have about these soulless bastards.

Seriously, we need a public option, I would switch in a New York minute.

[marmar]

8. That's my insurer !!!!

Our plan gets crappier by the minute......Aetna, I'm not glad I me ya. :(

[Quantess]

9. They'll make a tidy profit, I suppose.

[MisterP]

10. quick! give them some taxpayer money! nt

[JoeyT]

11. Don't worry, they're on it.