About 1 million policyholders will have to find new coverage
of ConsumerAffairsMay 5, 2025
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Aetna, owned by CVS Health, will exit the Affordable Care Act (ACA) marketplace, forcing approximately 1 million policyholders to seek alternative health insurance coverage.
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The decision, revealed during CVSs Q1 earnings call, stems from expiring federal financial incentives that previously made ACA participation profitable and helped boost enrollment by lowering premiums.
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While Aetna has played a minor role in the ACA marketplace, it will maintain other health insurance offerings and continue supporting existing ACA policyholders through 2025.
Aetna insurance, owned by CVS Health, is ending its health insurance policies under the Affordale Care Act, meaning as many as 1 million Americans will have to find new coverage.
Forbes reports it was a financial decision. Despite strong profits from these policies in the first quarter, financial incentives provided to companies offering coverage through the ACA marketplace will expire next year. The incentives lowered premium costs and led to record enrollment in the federal healthcare system in the last 12months.
The announcement, made during CVSs first-quarter earnings call, pointed out that Aetna has been a fairly small player in the ACA marketplace compared to other companies. However, it will continue to offer other health coverage options.
“The company is best able to serve members through its other health benefit solutions, which offer access to quality care, affordable health benefits and exceptional service,” CVS said in a statement.
“The company will continue delivering superior service and support to its individual exchange members through 2025 and residual activities in 2026.”
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