Aetna CEO: Why insurance will be costing more
Tuesday, 29 Oct 2013 | 4:00 PM ET Aetna CEO Mark Bertolini lists three reasons why new health care plans created to meet Obamacare minimum standards are more expensive than some older plans.The fact that many current health-care plans do not offer all the benefits required under Obamacare means that many premiums are likely to jump dramatically, Aetna CEO Mark Bertolini told CNBC.
Bertolini, appearing on Tuesday's "Closing Bell," said that most Americans with current plans are below the 60 percent essential Affordable Care Act benefit requirement, and individual plan participants will have to pay a minimum of a 20 percent increase to upgrade, he said.
Adam Jeffery | CNBC
Mark Bertolini, CEO of Aetna.Citing the current economy and reduced Medicare rates, Bertolini said the health-care company must find a way to bridge the gap between what it will cost seniors to pay out of pocket and what Aetna will be able to cover.
"Aetna alone will pass through to its customers over $1 billion in taxes and fees associated with the Affordable Care Act that need to go into the pricing," Bertolini said.
The Aetna chief went on to say increased costs to the plans include new taxes and fee implementations, including new changes in ratings to things such as pre-existing conditions as a result of expanding policy benefit requirements.
"Our operating plan is not finished yet," said Bertolini referring to the health-care company's December meeting to prepare for the market next year.
—By CNBC's Ismaela Best.
http://www.cnbc.com/id/101153188
