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Aetna Closing its Delaware Medicaid Plan

Aetna announces the shutdown of its Delaware Physicians Care plan on December 31, 2014.

According to an article in the Philadelphia Business Journal, Aetna reported on Wednesday, October 15, 2014 that its Delaware Physicians Care plan is not renewing its contract with the state to participate in Delaware’s Medicaid managed-care program.

As a result, Delaware Physicians Care will shutdown on December 31. Services will continue through the end of the year.

Aetna will work with the state to transfer the plan’s 137,000 members to another Medicaid plan.

Aetna Medicaid President and CEO Pamela Sedmak said the company is “reluctantly” taking the action after several months of extended negotiations with the state that failed to result in a rate agreement that would cover the costs of operating the plan.

“We regret having to make this very difficult decision,” said Sedmak. “Delaware Physicians Care is an integral part of the fabric of the community. … Unfortunately, recent changes to the Medicaid landscape in Delaware are requiring the plan to absorb significantly higher levels of costs. Without payment rates that support our ability to continue to provide high-quality service to members, we cannot keep this great health plan open.”

Delaware Physicians Care has 202 employees. An Aetna spokesman said some employees will be offered jobs with other Aetna Medicaid plans, the closest of which are in Pennsylvania and Maryland. The spokesman said some positions will be eliminated, but it was too early to speculate on exact the exact number of jobs that will be lost.

Officials at the Delaware Health and Social Services were not immediately available for comment on Aetna’s actions.