Thursday, 25 July 2013

Westhill Consulting - FriendFeed

Westhill Consulting - FriendFeed

Aetna will stop selling individual health plans in California

SACRAMENTO, California — Aetna Inc. discontinue selling individual health insurance policies in California, just weeks after opting out of the exchange that is being established as part of the national health care reforms, a state regulator said last month.

California Insurance Commissioner Dave Jones said he was disappointed in Aetna's decision because consumers need more choices. The decision does not affect people who have Aetna insurance through their employer.

"This is not good news for California consumers," Jones said in a statement. "A competitive market with more choices for consumers is important, as we implement the Affordable Care Act and health insurance coverage is a requirement."

In California's individual health insurance market, Aetna is a quite small player. According to 2011 figures compiled by the California HealthCare Foundation, Aetna has about 5 percent of the state's individual health market. By comparison, Anthem Blue Cross, Blue Shield and Kaiser share 87 percent.

Aetna says it has about 58,000 individual enrollees in the state and expects to have about 49,000 by the end of the year. It plans to withdraw from the state at the end of the year but will continue to offer small and large group plans, as well as Medicare, dental and life insurance products.

Those in search of to buying their own health insurance will be directed to Covered California, the state's new health insurance exchange starting Oct. 1. Aetna was not among 13 insurance carriers that will sell individual coverage to millions of Californians through the exchange.

According to Jones' office Under state law, Aetna will not be allowed to sell individual policies in California for five years once it leaves that market.

Forms of term life insurance coverage:

ART or Annual renewable term life - The policy holder can renew the policy yearly for a set period of time, can be for as long as 30 years. Premiums are adjusted higher with each annual renewal and such policies are based on the age of the policy holder.

A Guaranteed level premium term life is an insurance that allows the policy holders to lock in an assured premium for a set period of 5, 10, 15, 20 years or more. The guaranteed level serves as a protection of the policy holders from increases due to inflation or from higher premiums - that might otherwise result from changes in the policy holder's health.

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