You may have seen the big news on health care: Aetna is going to stop offering individual health insurance policies on the health exchanges in 11 of the 15 states where it operates. Aetna follows the lead of another large health insurer, United Health, which announced in April that it was withdrawing from almost all of the health insurance marketplaces where it operated.
The problem: the companies were losing money (or weren’t making enough) to continue to offer health insurance coverage. Meanwhile, health insurance rates for individuals are soaring, with insurance companies seeking rate increases of 20 to 40%. And on many health exchanges, with the withdrawal or bankruptcy of health insurance providers, consumers will have little choice—frequently just one plan to choose from.