Aetna Expects ACA Exchange Membership to Drop at Least 20% in 2025
-
Nov 22, 2024
As CVS Health Corp. looks to revamp its struggling Aetna health insurance business, the company plans to significantly reduce its Affordable Care Act exchange footprint and raise premiums. Speaking at the Wolfe Research Healthcare Conference on Nov. 19, CVS Chief Financial Officer Thomas Cowhey acknowledged that Aetna increased its premiums for exchange plans next year by “double-digit” percentages because it is losing $750 million to $800 million in that business due to mispricing this year. The company is also exiting unprofitable markets.
While Aetna’s financial results do not break out how many people are enrolled in exchange plans, CVS CEO David Joyner said during the firm’s third-quarter earnings call on Nov. 6 that exchange membership increased significantly this year. But he also said the segment’s “performance is unacceptable” because of “miscalculations during the 2023 bid processes.” As such, Aetna changed its pricing strategy for 2025 and expects its exchange membership will decrease by 20% to 25% next year, according to Cowhey.
Read more
© 2024 MMIT
The Latest
Meet Our Reporters
Meet Our Reporters
GAIN THERAPEUTIC AREA-SPECIFIC INTEL TO DRIVE ACCESS FOR YOUR BRAND
Sign up for publications to get unmatched business intelligence delivered to your inbox.