"I am disappointed Aetna is withdrawing from the federal health insurance marketplace in Pennsylvania, and many other states, due to financial losses on the state exchanges created under the Affordable Care Act", said Teresa Miller, commissioner of Pennsylvania's Insurance Department.
Aetna had filed paperwork in May to join Anthem, Harvard Pilgrim and Community Health in the ACA marketplace. A company spokesman says a final decision on 2017 policies is pending.
The announcement by Aetna late Monday adds to pressure on the exchanges that are a key part of President Barack Obama's health care overhaul law.
Aetna is leaving the Affordable Care Act health insurance exchange in IL for 2017, further reducing competition.
"We see these decisions as an opportunity for CareSource to offer a safety net of quality health care coverage options for the thousands of consumers impacted", said Steve Ringel, president of the OH market for CareSource.
Citing a second quarter pretax loss of $200 million, Aetna Chairman and CEO Mark Bertolini said in a statement that it will continue to participate only in Delaware, Iowa, Nebraska and Virginia marketplace next year.
The 3rd largest health insurance company in the USA is pulling its plans from 70% of the Obamacare insurance exchanges it participates in.
The fourth year of sign-ups for coverage through HealthCare.gov begins November 1.
The departure leaves Boone, Campbell, Owen and Kenton counties with only two exchange plans.
Bertolini said he's encouraged that federal health officials have pledged to consider "new options to modify the risk adjustment program". Only about 11 million people have signed up through the exchanges, about half as many as expected.
UnitedHealth Group Inc. and Humana Inc. have also said they would reduce their offerings on the exchanges, which is where consumers can purchase health coverage and qualify for subsidies to lower costs.
The company is just the latest marketplace carrier to announce plans for a pullback next year, shaking up the list of companies offering plans through the health insurance marketplaces as they enter their fourth year of open enrollment. "This is only the third year of the Obamacare exchanges, so companies are still testing the waters".
In some states, Aetnas decision to leave Obamacare will result in a significant loss of competition among health insurance providers.
Shares of Aetna (AET) were increasing in early afternoon trading on Wednesday as the healthcare giant reportedly wrote in a July letter to the Justice Department (DOJ) that it would plan to cut Obamacare exchanges if its Humana (HUM) deal was challenged.
However, Geraghty said that should come as no surprise, and said Florida Blue put together a very thorough strategic plan to deal with it.