Aetna Cutting Back Obamacare Health Programs

10:00.

>> and health alert to tell you about.

This morning.

8000 people in south carolina have to find new health care insurance in 2017.

Because aetna decided to leave the federal exchange.

State insurance director ray farmer was surprised by that move.

His agency was still reviewing application for 2017 coverage and their rate plans.

South carolina is one of 11 states dealing with the big health care blow.

>> anchor: aetna said obamacare exchange plans cost too much.

Tom foreman explains if this could mean the affordable care act on the road.

>> reporter: backing up big.

Aetna bails out of 11 of the 15 states it served after saying it lost $430 million.

United health care will dramatically cut participation too.

Saying its losses could be close to a billion over two years.

Humana, blue cross, blue shield and others are pulling way back.

Faced with brutal truth.

A lot more people got insurance but they are sicker and treatment is more expensive than expected.

>> i think one thing insurance companies cannot anticipate is what -- >> reporter: mit professor gruber a chief architect of obamacare.

>> they under overpriced and raising prices to make up for it.

>> reporter: long time opponent of obama signature law senator jon mccane described the situation like this.

>> it is clear that obamacare is unraveling and at a rapid rate.

We will have to go back to square one.

We will have to go back and not only repeal but replace and make health care available to every american.

>> reporter: it is a sobering reality check for president obama.

Who just a few years ago was bragging about the planned success.

>> the insurance companies are saying thesek market places, this law, will work.

They are putting money on the line because they think it will work.

>> reporter: but it turns out people insured under obamacare tend to be older and have higher rates of serious expensive illnesses including heart disease, hiv, hepatitis, high blood pressure, and diabetes.

Plus those with preexisting conditions are now eligible for insurance.

The kaiser family foundation predicts next year many users could see premiums rise 10 percent.

Administration calls this growing pains.

Aetna's decision does not change the fact that health insurance marketplace will continue to bring quality coverage to millions of americans.

But some insurers insist that could only happen if federal government provides more money.

Hard sell in congress where republicans do not like the program anyway.

>> obamacare does not work.

It has to go.

>> reporter: while supporters suggest that opposition is part of the problem.

>> when time came for obamacare republicans blocked funding for risk sharing.

Part of the reason insurance companies were struggling, denied billons of dollars promised under the law.

>>anchor: well, aetna c.e.o.

Said they may return