Aetna withdraws from Colo. small group market

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Aetna will no longer offer small group insurance in Colorado starting Friday, according to reports from Colorado Managed Care News.

The insurance company decided it “could no longer meet the needs of our customers” while remaining competitive in the small group market. That group includes employers with between two and 50 people.

Aetna declined to say exactly how many people were affected by the policy change.

Existing small group plans will be renewed for one renewal period, but some companies might not receive a full year’s worth of coverage, depending on plan renewal dates.

Plans that renew between Oct. 1, 2010 and March 31, 2011 will be covered for an additional year. Plans that renew on or between April 1, 2011 and Sept. 30, 2011 will be renewed until March 31, 2012.

Aetna will stop all coverage for small groups by April 1, 2012.