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Health Insurer Anthem Expects Small ACA Profit; Aetna Says Exchanges Still “A Good Investment”

Health insurer Anthem expects to see a small profit this year from the Affordable Care Act’s public insurance exchanges, through which the company serves roughly 975,000 people across 14 states...
May 3, 2016

Health insurer Anthem expects to see a small profit this year from the Affordable Care Act’s (ACA) public insurance exchanges, through which the company serves roughly 975,000 people across 14 states. The news is in contrast with the recent announcement by UnitedHealth Group that it will leave the ACA health insurance marketplaces in at least 22 states to stem losses related to the law.

Anthem and other insurers have said the government needs to tighten loopholes that allow customers to purchase coverage outside annual enrollment windows. Anthem also wants more flexibility in the type of coverage it can sell in this market.

Anthem officials also say they look forward to gaining additional business on the exchanges after finalizing a $48 billion purchase of rival insurer Cigna, a deal that might close in the second half of this year. “We believe we are well-positioned for continued growth in exchange (enrollment) as this market stabilizes,” said CEO Joseph Swedish, adding he’s “really glad” to be serving nearly 1 million people in this still-developing market. Meanwhile, Aetna chairman and CEO  Mark Bertolini says his company expects to break even on the exchanges this year. Of the ACA, he said “we see this as a good investment.” 

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