Aetna health insurance in Indiana. We hope you didn’t want a quote for any of their plans. That’s because Aetna is no longer offering personal health insurance coverage in Indiana. Even though they’re the third largest health insurer in the US, they have exited the market here. Actually, they notified the Department of Insurance of their intentions in late April. However, you can compare rates from all of the top providers on our website.

Of course, they have less than 1000 active individual policies in the state and that number is certain to dwindle quickly, as current customers seek to change to other companies. However, their group contracts will remain in place. Aetna rates for individual plans were typically very high so, it was difficult for them to compete with Anthem and UnitedHealthOne. Even smaller companies such as Celtic often could compete with their rates. Aetna also did not offer popular “temporary” plans.

Undoubtedly, recent health care reform had a hand in Aetna’s decision. The “80% Rule,” (requires insurers to spend 80% of premium dollars on health care) was the primary reason for the exit. And it may have impacted Cigna, Guardian, Pekin and American Community Mutual who also pulled out of Indiana. Who will be the next company to leave the state?  We’re not sure although we don’t believe it will be UnitedHealthOne or Anthem Blue Cross. We’re not sure about any other carriers.

The impact on Indiana health insurance rates could be significant. The proposed “Exchanges” that are to be fully operational in 2014, are designed to aid consumers (with the help of brokers) find affordable health care. But it may not work that way. If more companies exit the marketplace, there will be less choices and presumably, higher premiums. And consumers may not be able to keep the plans they already have.  However,it appears brokers/agents will have a role in the Exchanges.

Rates could be substantially higher and with fewer insurers participating, the long-term effects could be troubling.  And certainly, there will be a temptation by many people to simply avoid buying insurance until absolutely necessary. Because the scheduled penalties for not having health care are so light, it’s possible that no major health insurers will want to stay in the marketplace, resulting in government-run medical care. That is a scenario that very few want to see.

Ironically, Aetna offers very affordable plans in nearby Ohio and Pennsylvania. Their “Value” policies, that feature limited prescription and office visit benefits, are priced competitively in most areas. Their HSA rates also compare favorably to UnitedHealthOne and Blue Cross.

But Indiana was just not a sustainable state. Anthem Blue Cross Blue Shield and UnitedHealthOne hold a huge chunk of the market and Medical Mutual, a non-profit company, seems poised to capture additional customers. Humana, Assurant and Celtic all have niche products that may gain a little more business in the upcoming months. Of course,you can view their rates through our website.

Since we represent all Indiana residents (not just those insured by one particular company), we’ll help you compare plans from all of the companies operating in the state. Whether you’re a present or past customer of Aetna, we’re here to make sure you have the best health care your dollars will buy. Even though Aetna is not available, by viewing free quotes on our website, you can compare alternative plans.

Tags: Aetna health insurance in Indiana, health insurance Indiana, Indiana health insurance Exchange, Indiana insurance health, Low cost Indiana health care