Aetna drops HMO for small businesses - In the News - in Colorado - Brief Article - Statistical Data Included

Healthcare Financial Management, Jan, 2002

After losing $30.6 million on its HMO product in Colorado during the first three quarters of 2001, Aetna U.S. Healthcare has announced that it will cease offering its HMO plan to Colorado small businesses after May 31, 2002. The decision will affect almost 100,000 plan members. Aetna was a popular HMO option for small businesses in the state, because the plan's prices were low compared with those of other HMOs.

Aetna's low pricing, however, resulted in heavy financial losses for the company.