Aetna's credit prospects improve following ACA pullback

Listen

Moody's Investors Service said Aetna enhanced its credit prospects after retracting from Affordable Care Act exchanges in over 500 counties, the Hartford Courant reported.

The Hartford, Conn.-based insurer's decision to leave 11 of its 15 state exchanges next year is "credit positive," as it lowers the insurer's "earnings drag from unprofitable products," according to the report. Moody's also said the exit decreases the insurer's exposure to poor business many insurers are facing on the exchanges.

Moody's said the loss of exchange enrollees will not heavily impact Aetna's business or revenue. In addition, Moody's does not think the insurer's exit will affect the outcome of its litigation with the Department of Justice, which sued to block its $37 billion acquisition of Louisville, Ky.-based Humana in July.

More articles about payer issues:
Tennessee commissioner: State exchange on verge of collapse
Utah unconcerned about Humana's depature
Will ACA premium increases influence races for US Senate seats?

 

Copyright © 2021 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars