Aetna pulls out of Maryland health exchange

Fri Aug 2, 2013 1:14pm EDT

Aug 2 (Reuters) - Aetna Inc has pulled its applications to sell insurance plans on Maryland's individual health exchange after it was asked to lower its rates by up to 29 percent from what it had requested, according to the state's department of insurance.

In a letter sent to the Department of Insurance, Aetna said that the required rate modifications cut premiums too low on both its Aetna and Coventry products. Aetna closed on the acquisition of Coventry this spring.

"Unfortunately, we believe the modifications to the rates filed by Aetna and Coventry would not allow us to collect enough premiums to cover the cost of the plans, including the medical network and service expectations of our customers," Aetna said in a letter to insurance commissioner Therese Goldsmith.