Aetna: Changes to Medicaid would hurt business — 5 key notes

In its annual report, Hartford, Conn.-based Aetna said if Republicans change the Medicaid program, it would have big impacts on the company’s bottom line, the Hartford Courant reports.

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Here’s what you should know.

1. Aetna derives 48 percent of its revenue from Medicare and Medicaid. The ACA expanded Medicaid, increasing Aetna’s income.

2. If the Republican replacement cuts those programs’ beneficiaries, Aetna expects to see decreased revenues and profits.

3. In 2015, Aetna withdrew from its Delaware Medicaid market because of inadequate premiums.

4. The company said if the Republican’s replacement increases the number of uninsured people, it’ll further exacerbate insurance costs as the private sector picks up the uninsured burden.

5. However, an ACA replacement wouldn’t only be bad for Aetna. The American Health Care Act has a proposal rolling back taxes on payers from which the company could benefit.

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