After Aetna announced plans to leave America's Health Insurance Plans Jan. 5, sources have been curiously evaluating the decision and its impacts, according to The Hill.
Created in 2003 due to a merger between the Health Insurance Association of America and the American Association of Health Plans, AHIP is currently the health insurance industry's largest trade group. But the organization has seen numerous problems in recent years, sources claim.
Karen Ignagni, AHIP's CEO for 22 years, left the trade group in 2015, as did two other senior officials — Mary Beth Donahue, former executive vice president, and Dan Durham, former executive vice president for strategic initiatives and interim CEO.
Aetna's exit from AHIP, combined with UnitedHealthcare's departure in June, leave AHIP without some needed member dues. AHIP earned $41.5 million in member dues in 2014, according to the report. Aetna paid approximately $1.1 million in dues each year.
The rapid departure of insurers from AHIP has left some analysts puzzled. "With Aetna and [UnitedHealthcare] facing such tough regulatory scrutiny, it seems silly that they would abandon one of D.C.'s most powerful trade organizations. They are putting their brand at risk," said an anonymous industry source.
According to The Hill's other sources, the AHIP's larger members have recently felt distanced from the trade group's leadership.
Still others believe AHIP has nothing to fear. "AHIP is going to continue to speak for the industry, that's just what's going to happen," said Dan Mendelson, CEO of Avalere Health and a former Clinton administration advisor.
"Let's be real, when Sylvia Burwell wants to find out what the health insurance industry's position is on an issue, she's going to call Marilyn Tavenner. She's not going to call the CEO of any one member company," he added.