Speaking at a recent conference, Mark Bertolini, CEO and Chairman of Aetna Insurance, announced that the end is near for profit driven health insurance companies. â€œThe system doesnâ€™t work, itâ€™s broke today. The end of insurance companies, the way weâ€™ve run the business in the past, is here.â€
In highlighting the reasons for his bold statement, Bertolini called out the ban on medical underwriting propounded by the Affordable Care Act, which Bertolini believes has made the traditional health insurance business model untenable in the long term, while also giving an â€˜honorable mentionâ€™ to the MLR requirements.
Underwriting is the process of separating out the healthy from those more likely to be ill and then offering coverage to the good risks while passing on the bad ones….