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Aetna leaves Colorado’s individual insurance market

The Wall Street Journal reports:

Aetna Inc. will no longer sell new health-insurance policies to individuals in Colorado, saying it cannot be competitive in the state. …

Starting last month, the health law [HR 3590] requires companies to pay out 80% of premiums that they collect from individuals and small businesses on medical care versus profits and administrative costs. That rule, known as a minimum medical-loss ratio requirement, has raised questions about whether small plans will be able to continue to compete, because they could have trouble affording their administrative expenses. …

Carl McDonald, an analyst with Citigroup Investment Research, said the medical-loss ratio rules likely triggered Aetna’s decision to quit Colorado. “You’ve got to be big enough to be efficient and get to the MLR minimums,” he said. “That’s the driving force here.”

Read the whole article: Aetna Scales Back in Colorado.

Related story: Because of ObamaCare’s price controls & forced issue requirements for on child-only policies, six insurers have stopped selling them in Colorado.