CVS Health, which owns health insurance giant Aetna, will return to the Obamacare marketplace to sell individual insurance plans in 2022, the company announced during a fourth-quarter earnings call.
Aetna had previously left the individual market due to rising costs. According to CVS Health CEO Karen Lynch, the marketplace has stabilized enough for the company to re-enter with some investments, she said during the call.
“As the ACA has evolved, there is evidence of market stabilization and remedies to earlier issues. It is now time for us to participate in these markets,” she said. “We will show that we can bring great value to those who seek coverage.”
The return to the marketplace comes on the heels of the Biden administration taking power. The administration has promised to strengthen and build upon the Affordable Care Act, which was signed into law under President Obama, when Biden served as vice president. The namesake healthcare law lost a number of big providers in the last few years, including Anthem. The Trump administration worked to undermine Obamacare and even repeal the law.
The company intends to be back on the individual market on Jan. 1, 2022, though Lynch was mum on specifics during the quarterly earnings call.
“We're still evaluating our pricing, our market,” she said. “So, more to come on that.”
The announcement followed news that CVS Health reported a 44.1% decrease in net income for the end of 2020 compared to the same period the previous year. However, pharmacy sales from Covid-19 testing and vaccinations helped CVS Health beat estimates.
“The COVID-19 pandemic presented unique challenges to our business and to the entire healthcare industry,” Lynch said in a statement. “We utilized the full depth and breadth of our capabilities and our presence in local communities across the country to play a leadership role in COVID-19 testing and vaccine administration.”
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."