While many other big insurers are distancing themselves from Obamacare, Cigna is doubling down.
The Connecticut-based company announced Tuesday that it is planning to offer plans in at least three new markets in 2017: Raleigh-Durham, North Carolina; Richmond, Virginia; and Chicago.
It's not clear whether Cigna's decision was shaped by the U.S. Department of Justice's move last week to block its proposed acquisition by rival insurer, Anthem. Cigna has signaled that it may not be interested in going through with the proposed merger in the face of legal action by the federal government.
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However, Anthem has also indicated that it is committed to offering plans through the individual insurance exchanges set up by the Affordable Care Act. It announced it will offer plans in nine more states next year, up from its current 14. Anthem CEO Joseph Swedish said on Twitter last week that the company's acquisition of Cigna would help "stabilize" the ACA market.
Other large insurers have scaled back their ACA business. UnitedHealth will leave all but three state exchanges next year, and Humana is slashing its participation from 19 exchanges to 11 for 2017.
Humana is in a similar position as Cigna. It is involved in a proposed acquisition by Aetna which is also being challenged by the Obama administration in court. But unlike Cigna, Humana has indicated it will collaborate with Aetna to vigorously fight to preserve the pending merger.
For large insurers choosing to exit the ACA business, the choice of whether to stay or go was not the most important one they've ever asked themselves. The PPACA exchange business only accounts for roughly 13 million people, a drop in the bucket of the overall health insurance market.
The bread-and-butter business for major insurers remains traditional, employer-based health plans. Humana is a notable exception; it gets much of its business through Medicare Advantage plans. Many insurers perceive the burgeoning market of private Medicare plans, as well as privately-managed Medicaid plans, as more promising than the exchanges.
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