Obamacare problems: Insurance companies backing out
A big blow for President Obama's landmark health care law.
One of the biggest names in insurance says it is pulling out of most of its Obamacare exchange plans, saying they're simply too costly.
Aetna is backing out from Obamacare; bailing out of 11 of the 15 states it served, after saying it lost $430 million.
United Healthcare will dramatically cut its participation too, saying its losses could be close to a billion over two years.
Humana, Blue Cross/Blue Shield, and others are also pulling way back.
Faced with a brutal truth: a lot more people got insurance, but they are much sicker and their treatment is more expensive than expected.
“I think one thing insurance companies didn't anticipate is what good consumers we'd all be," said MIT Professor Jonathan Gruber. He was one of the chief architects of Obamacare
“I think they underpriced and so I think they've raised prices to make up for that," said Gruber.
Longtime opponent of Obama's signature law, Senator John McCain, describes the situation this way, “it's clear that Obamacare is unraveling at a rapid rate. We're going to have to go back to square one. We're going to have to go back and not only repeal but replace and make health care available to every American."
It's a sobering reality check for President Obama, who just a few years ago was bragging about his plan's success.
The Kaiser Family Foundation predicts next year, many Obamacare users could see the cost of their premiums rise 10 percent.
Meantime, Aetna's CEO says the company may consider returning to the exchanges if improvements are made to the program.