ATLANTA — Two insurance companies told the state today they decided not to offer plans in Georgia’s health exchange next year as part of Obamacare.
That still leaves five plans participating, but the withdrawal of Aetna — one of the state’s largest insurers — will leave residents of some parts of the state with limited choice. The other company pulling out is Coventry Health Insurance.
Their decision comes on the day Georgia Insurance Commissioner Ralph Hudgens must approve the remaining plans for their inclusion in the federally run exchange which begins operation Oct. 1. Georgia opted not to run the online exchange, leaving it to the U.S. Department of Health and Human Services.
Hudgens asked the department for a 30-day extension on the deadline because he said the premiums submitted by the seven companies were too high, even though outside actuaries concluded they were justifiable. The department still hasn’t let him know if it will grant the extension.
Hudgens, a Republican elected in 2010 on a platform opposing the federal health-reform law known as Obamacare, said Wednesday the pullout of the two insurers offered new evidence that the federal program was unworkable.
“Obamacare has created great uncertainty in the health insurance market, and I am not surprised that Aetna and Coventry have decided not to participate in the federally facilitated Georgia exchange,” he said. “The exchanges are a centerpiece of the healthcare law, and this announcement means that only five health insurance companies will be operating on the Georgia exchange.”
Meanwhile, the White House released a report today listing the benefits of Obamacare and showing that premiums in several other states are turning out to be 20 percent lower than what the Congressional Budget Office had predicted.
In a conference call with reporters, administration officials said they didn’t know if the extension would be granted but that they were eager to work with Hudgens to get Georgia’s health exchange running on time.