aetna is pulling back. the nation's third largest health insurer is dramatically cutting its participation in health care exchge leavi consumers in those markets with fewer options. and the company isn't pulling back gradually. instead, aetna is doing it all at once. the reason? it's running up big losses in markets where patients are sicker than the company they would be. it is another blow to president obama's signature health reform law and follows the move of two other major insurers. the move raises a lot of questions about the landmark progra aetna says it's cutting aca exchange programs by 70% nationally next year. because after losing $230 million in the second quarter that kind of loss is unsustainable. it is a major about-face fort aetna's ceo who just six months ago said that he p on the excha. critics say the timing is curious, coming just after the department of justice moved to block aetna's acquisition of huma. >> maybe then they were trying to butter up the department of justice to approve t

aetna's c.e.o. said they're losing money. are they losing money or just not making the same amount of money? >> aetna is losing something like $300 million this year on the affordable care act extinction. now, they're making lots of money in other businesses, and until now they've been willing to say the wait-and-see how this particular business worked out. you know, there are not that many places in the u.s. where as a health insurer you can pick up business. most folks already have health insurance. so the affordable care act was a new market opportunity for these guys. >> stewart: that was one of the talking points about tyou get new insurers, new people to insure. that didn't happen? 0,000 new customers.ng like so some nice growth. the problem is right now they're not making money on it. >> stewart: can you explain to me why aetna said it's losing so much money on obamacare. >> aetna said they ended up with sicker, older customers than they expected. there are other things going on, maybe around the edges, people gaming t

big of a blow is aetna's departure to the affordable care act? guest: talking about predictable, i don't think it's not e blow, but it's exactly news. united healthcare was the first to say they were going to drop out. humana dropped out in july. aetna. we have the problem, of course, is why are they dropping out? and the answer is, there are problems with the law. here a n, when you were few months ago after united healthcare dropped out, you story much ado about relatively little. departure a 's story that's going to have a much bigger impact? it's much ado about a little more. i don't think it's a big deal reason.following aetna had altogether 911,000 subscribers in the exchange. they're going to keep a bunch of those. when you take a look at what they comprise in terms of the of people in he -- in coverage through the affordable care act, it's about 6% of the total load in terms of may lose coverage. so it is a problem, but it isn't huge problem. you have to understand, of course, there are a number of still find it quite profitable to partic

aetna said it was a simple question of math. with obamacare enrollment numbers below projections, the company reported more than $430 million in losses since the health care exchanges january of 2014, in part because not enough healthy people are signing up. aetna is just the latest of the major national health insurers to announce a pullback. united health care and humana unveiled major cuts. >> this is a red flag for the future of obamacare. >> reporter: larry levitt is with the kaiser family foundation. >> this next open enrollment period will be critical. if enrollment grows i think a >> reporter: an administration official said aetna's withdrawal does not change the fundamental fact that the obamacare marketplace will continue to bring quality coverage to millions of americans next year and every year after that. and another official said no county would be without insurance options when open enrollment starts later this fall. but the big concern for consumers here, scott, is choice, whether in some areas of the country peo

aetna will drop the coverage in some states.ies are costing more than expected and they are losing too much money and so what does this mean for the future of obama care? this is host of lares. >> let me start with you. when it comes to aetna and the on and on and united health care roeptly why is obama care going down the tubs. it is a dead plan walking because baked into obama care is a requirement that everyone is supposed to carry coverage. but the practical solution for younger people with smaller salaries, they look at choice of paying 4 or 5000 in premium for a plan that delivers nothing because of high co-pays and high detuktibles. or a fine to the irs. the choice is easy and a so what happens, a lot of younger people who are healthy will not pay. and that's leaving only people with chronic illness that are signing up. they get the plan because they need. it and that means losses. and that is the same pattern in etraas united health care. there is no way to fix it other than the massive bail out by the government. >> and

aetna chairman and ceo mark bertolini with me live. and who's winning the oil war, america's frack e, -- frackers? a fox business exclusive with cme group executive chair and president terry duffy. the dow looking at its longest losing streak in more than a year. what's going on here? it's down 105 points. what dog days of august? we're less than an hour to the closing bell. we're firing on all cylinders, so you're in the right place. let's start the "countdown." ♪ ♪ liz: bear claws are out in full force at this hour. both the nasdaq and the s&p are on track for their worst day in over a month. that bear looks a little passive. a little nose, a little runny nose there. well, look, the claws are out either way because you've got auto and tech stocks petering out, and that's weighing on the industries. do you own shares of general motor ors? how about ford? toyota, fiat chrysler, all of them moving lower. everybody else down more than 4. but which cars were not hot, which cars were hot when it comes to sales? i'm going to get you that in

aetna runs up losses on its health exchange business, becoming the latest to consider its participation in the program. those std m tonig on nightly business report for tuesday, august 2nd. good evening, everyone. i'm sue herera. tyler is off this evening. blue chip dow index lost itself year.h in a row making this its the reasons ib collude falling oil prices, mixed auto sales and concerns over the italian banks. not even a stimulus package out of japan was enough to calm fears. dow industrial average lost 90 points. it has been down as much 150 points.e nasdaq was off 46 snap its five-day win streak and s&p 500 fell 13. as for oil prices, they settled below $40 a barrel for the first time april and the auto stocks shift lower today after july sales pain a mixed picture. sharfiat chrysler fell today. overall, the pace of s increasing autom while maintaining strong profits. phil bow has more. >> afterf rising auto sale, dealer rs facing a new realit fact, they cooled of july, with thres reporting sales that were below expectations. thautomaker, buyers are paying close to a record high f

with humana, aetna would have to git obamacare.etna is the latest in a long line of major u.s. health insurers to drop out. one arizona county has zero health insurance coverage under obamacare. our own liz macdonald joins me now. wow. everybody said it's not going to work, it doesn't make economic sense and here we are, the company is saying it doesn't make any sense. >> that's right, trish, the arizona county, 400,000 people without an insurer. what is hhs telling people who get insurance canceled because the insurers drop out of the changes? you can go on medicaid, get catastrophic insurance which has high deductibles or pay the penalty. it's striking. so what's happening as you pointed out, aetna's ceo was asked by the department of justice, okay, the d.o.j. said to aetna, tell us what the impact would be if we block your merger with humana. the three and four insurances in the world getting together? the ceo wrote back saying we need to cover our losses, and the only way to do that, if we do merge with humana, they have 430 mi

humana dropped out in july and now we have aetna. the problem, of course, is why are they dropping out? the answer is there are problems with the law. host: ron pollack, when you are here a few months ago after united health care dropped out, you said it was much a do about relatively little. is the aetna departure a story that's going to have a much bigger impact? guest: it's much ado about a little more. i do not think it's a big deal for the following reason. aetna had altogether 911,000 subscribers in the exchange . they're going to keep a bunch of those. when you take a look at what they comprise in terms of the total number of people in coverage through the affordable care act, it's about 6% of the total load in terms of those who may lose coverage. it is a problem, but it is not a huge problem. yet understand that there are a number of insurers that still find it quite profitable to participate and some are expanding coverage. you have got groups like cigna and kaiser permanente. they are all participating and find it worthwhi

that this ssible aetna news could make it a bigger issue. t's kind of resurfaced obamacare more in the news, and pointed some to the news as an indication of law.lems with the so we'll have to see whether it kind of bubbles up. it's been kind of an unusual residential year, so obamacare hasn't been the number 1 issue, this 's possible that aetna decision could kind of up in the ranks host: host: okay. peter sullivan with the hill talking about the decision to scale back aetna's participation changes.alth thank you for joining us this morning. me. t: thanks for having host: and we want to hear from our viewers about this issue. we have special lines, those insurance through the federal healthcare changes can call 202-748-8000. employer provided insurance can call 202-748-8001. uninsured viewers can call 202-748-8002 and we're of icularly interested, course, to hear from any viewer the s directly affected by decision by aetna or any of the other insurers to end their participation. we have david calls in from new empl , maryland, with employer

aetna said a simple question of math. with obamacare enrollment company reported more than $430 million in losses since the health care exchanges opened in january of 2014. in part because not enough healthy people are signing up. aetna is just the latest of the major national health insurers to announce a pull back. united health care and humana unveiled major cuts. >> this is a red flag for the future of obamacare. >> larry leavitt with kietzer pivotal. if enrollment grows, concerns will fade away. but if enrollment stag nats. likely to trigger a debate. >> administration official said aetna's withdrawal does not change the fundamental fact that the obamacare marketplace will continue to bring quality coverage to millions of americans next year and every year after that. >> another official said no county would be without insurance options when open enme fall. the beg cig concern for consumes choice. in some areas if people will have one or two insurers to pick from. >> jan crawford in the washington newsroom. thank you

the aetna was just -- ceo was just here.have touched on this -- the of earnings came out last week. technology did very well. otherwise, it has been lackluster and tepid at best. julie: ok, we will see if this volatility increased continues. getting back to the earnings companies you were talking about, one of the company said reported last week was amazon and we saw amazon shares hit a record high following the earnings report, and even though earnings are behind us, you were looking at doing a trade on amazon now. absolutely, and a lot of investors are mad they missed out on the amazon run, so it is still in the infancy of a bull market, we believe. it has one of the best long-term duration growth prospects we have seen in a long time. they are starting to scratch the surface in the cloud with amazon web services, and their margins are increasing, and that came out through earnings. it is dropping straight down to the bottom line. it helps them pay for future growth prospects, including prime and alexa. to october, let tim

bertha. >> michelle, it's a sharp reversal from aetna. they announced a couple weeks ago during second quarter earnings that they would be re-evaluating their participation in the obamacare exchanges. now they say they are slashing that participation by 70%, going from 15 exchanges this year to just four states next year. the states they will be in include delaware, iowa, nebraska and virginia. the reason, they are losing money. they booked $230 million in pretax losses in the second quarter. so when you look at the picture, the fact that humana's also pulling back, united announced a big pullback, you're going to see united in just about three states, maybe three, that's down from more than 30. you're going to see aetna in four, down from 15, humana in 11 down from 15, anthem so far says they're staying put. so that would mean if they stay put they'll be in 14 states next year. but that means in many states you could see hundreds of thousands of people having to switch plans because their insurers are leaving. the insurers today are lowe

aetna says its decision was . >>> cisco plans layoffs. the dow component will cut 5,500 employees. that's nearly 7% of its workforce. the s largest networking gear maker says the reduction is part of its shift away from switches and routers and toward areas such as security and the cloud. the company made the announcement when it reported its earnings today. cisco did earn 63 cents a share in the most recent quarter. that was 3 cents better than estimates. revenue down in cisco's traditional router business, but overall, revenue was up roughly 2% from a year ago, at $12.6 billion. as for shares, they fell in initial after-hours trading in response to that profit report. >>> viacom and sumner redstone are reportedly back in settlement talks. according to the "wall street journal, their litigation, change the board, and lead to the exit of current viacom ceo, phillippe domon. as part of the compromise, viacom's operating officer, tom dooley, would be promoted to ceo. one roadblock is the potential sale of paramount, which redstone and his daughter, shari, believe is core to viacom's

year after aetna's departure.rture. states and counties in purple on this map are the ones that will only have one carrier as the option in the aca marketplace. the pink will have two providers. the white color three plus providers. let's talk about pricing in those markets that have just one provider. one thing that your viewers need to understand is that'su have one company providing coverage it doesn't mean you have only one plan to choose from. most of the companies offer a variety of plans. from a consumer perspective there are two sets of issues that we care about. one, we want to make sure that our provider is in the network of our plan. to fact that there are going be numerous plans offered even by one company should take care of that. the issue you raise is a little more difficult. that relates to price. because it's good to have competition. competition helps bring prices down. perspectivesumer the consumer cares mostly about what does he or she pay out-of-pocket. one of the things your viewers need to u

aetna says it's pulling out of the health exchanges... set up by the affordable care act in 11 of the 15 states where it currently operates. the company reports... it's lost 430 million dollars in policies since the exchange opened in january 20-14. aetna will ?only? sell policies in delaware... iowa... nebraska... and virginia. the move follows similar exits by competitors like "unitedhealth group"--- the nation's largest insurer. aetna is expected to exit health care exchanges next year. 3 a new bank-rate-dot-com study finds.... 21 percent of working americans are saving ?more? for retirement. that's the ?highest level? in five years. ?leading? the charge is "generation x".... followed by millennials. the study also finds... those aged 52 to 61 are saving ?less? - even though they're more likely to be in their ?peak? earning years. 3 google is going up against facetime. the company launched a new ?video calling service? called duo. it's ?free.?it allows users to ?make calls between i-o-s and android devices? -- something facetime can't

blow is aetna's departure to the affordable care act? well, we forget, i don't think it's a huge blow. news.'s not exactly united health care is the first to say they were gonna drop out. humana dropped out in july. have aetna. the problem, of course, is why are they dropping out? and the answer is, there are problems with the law. pollack when you were here after united health care called that you much to do about relatively little. s this aetna's departure, a story that will have a much bigger impact? alile much ado about more. i don't think it's a big deal following reasons. etna had altogether 911,000 subscribers in the exchange. they're gonna keep a bunch of those. take a look at what of the prised in terms total number of people in coverage through the affordable it's about 6% of the total load in terms of those who lose coverage. so it is a problem, but it isn't a huge problem. you have to understand of course here are a number of insurers that still find it quite profitable to participate. some are expanding coverage. groups like

. >>> aetna, bailing on obamacare. the third largest health insurance company, bowing out of major markets. owner and operator of more than two dozen applebee's restaurants tells us how it affected his business from day one. ashley: the dow down more than 80 points. johnson & johnson, verizon, travelers all among the biggest drags today, but phil flynn, price futures at cme, watching gold and oil climbing higher. adam shapiro on floor of new york stock exchange. adam, you have your eyes on a bright spot as well. reporter: talk about dicks sporting goods. they have better-than-expected earnings. the stock to give you an idea hit an all-time high. it was what, $60 and some change before settling down. this stock is up 66%. they are playing by the rules and playing well. they upped their full year guidance. they expect same-store sales to go up for the year, somewhere two, 3%. it was unfortunate but sports authority liquidation actually helped business at dicks sporting goods. they did pretty well. look at ford. ford had

aetna will withdraw from affordable character market.e insurer will pull out of 11 of the 15 states where currently offers about my care. big disappointment for two american olympic athletes yesterday. allyson felix had to settle for silver in the or hundred meter in a photo finish and gymnasts simone biles slipped on the balance beam and ended up with a bronze medal instead of the gold she hoped for. let's check in on u.s. stock market futures after their record run that brought all three major averages to new heights yesterday. nasdaq futures speaking at a point gain. dow futures just fractionally lower. that's a look at what's happening now. lea: republican nominee donald trump filing to bring jobs back from china as the chinese emperors to the u.s. are booming. jeff flock has details from chicago. reporter: good morning, guys. we come from the outside the cost-plus market from bed, bath and beyond. one of the stories that specializes in selling items including her nature. they import into the u.s. from out side. if you look up for nu

looking shares of aetna. they're basically flat at the moment, at $119.29 a share.arning about changes to obama care, investors got warning from new york fed president, bill dudley today, a move that rattled markets. new york reserve president dudley telling fox business peter barnes in an exclusive interview, markets may not be taking rate hike seriously enough. more with the exclusive sit-down, it kind of frightened or shook market as bit. what was nugget that turned markets red after couple record breaking days? reporter: bill dudley wanted to manage market expectations to communicate with investors, another rate hike by the fed in short term federal funds rate of quarter point or so is on the table for this year. he has been been cautious moving forward with higher rates, wanting to make sure the economic data comes in solidly for the fed to make a move. he is positive on economic indicators he has been watching. so, as a result, he thinks the fed could move on rates at one of its three meetings coming up the rest of this year, including as soon as the meeting a

>> aetna, does, yes but there's an appeal unit at aetna which is totally separate from the claims in. so, the different folks, different sets of eyes >> what remedy two people have if they wish to pursue this matter beyond your appeal process? >> after appeal the next option and is only one appeal allowed x option will be litigation >> litigation, okay, thank you. >> just looking at some benchmarking information ccsf had a higher percentage of claims than aetna. group and aetna business. so, the following category had a little bit high. skeletal and group of diagnostics is always the top one with every client i've ever worked with. so you're running a little bit higher than a book of business than the pure industry. neoplasm, injury poisoning, those were the ones running just a little bit higher than the benchmarking that we looked at. however, you had a lower percentage of claims and at the pier and book of business for mental disorder. that would include things like anxiety, depression, those kinds of things. that was a good outcome. >> does this comport with our pharmacy analysis?

and aetna will pull back from public health exchanges, joining what the likes of humana has done. they're going from 15 states down to four and cover almost a million americans. there's county in arizona that stands the chance of not having a single exchange provider p provide insurance is how the mechanics basically work. that would be a very much larger political story. >> exactly. these companies have kind of -- to varying degrees, tried to commit to this marketplace and then one by one, have either reduced their commitment or pulled out all together. obviously, i think there's probably broad consensus there are tweaks to be made to the reimbursements and incentives. private companies are not going to wait around for the fix. >> a pretty ugly open for hain ticker symbol, h-a-i-n and the company after hours put out a reli lease they're going to delay their earnings because of some accounting questions how they recognize revenue and they're doing an internal review and they say they will be missing their full year guidance, a slew of downgrades on this stock from the likes of sun

etna currently offers -- aetna is in 24 states but will reduce to 4. the company blames the tax loss per year. obama supporters believe it is a political move to prevent the merger of aet -- -- aetna and humana. california will not be impacted because aetna does not offer plans through our state's. >>> and the bill has to do with money people donate on their tax returns. it comes after an associated press investigation found that at least 1/tenth of those donations went unspent last year, and over the past ten years, $10 million of donations sat unspent in state accounts. that's a lot of money. >>> time is 4:18. hey sal, are people on the roads already? >> yes, they are, dave, pam. good morning to you. there certainly are people on the roads. in fact, people make these long commutes. we have dubbed them super commutes. you can call them whatever you like. there is going to be sometimes unexpected slow-downs. there are going to be unexpected slow-downs on places like the san jose commute coming through into morgan hill. it does look okay. there have bee

aetna is losing millions of dollars. the company says its policy holders turned out to be sicker and costlier than expected. it's the first major health insurer to make a decision like this. aetna will still offer iua a new study suggests americans are learning the importance in planning for retirement. it found 21 percent of working americans say they're saving more for retirement this year than they were last year. that's the highest level reported in the past five years. and fewer people are opting out of saving for retirement altogether... with only five percent saying they did not contribute to retirement savings this year or last. a patent recently granted to apple hints at the tech gadgets. the patent highlights technology to edit photos taken underwater. in the patent, apple envisions the technology being used in its iphones and ipads. apple has been behind the trend of water-proof gadgets... while samsung has offered water-resistant products for years. remember kim kardashian's ex-husband?he was a better swimmer

now we have insurance giant aetna pulling out of eleven states including florida. how and why and what it mes? >> some other major insurers c they are people signedeid not sign to p for the ow heah insurance gambled. they sai i'm healthy. >he y all thi money to an pen some say 17%. they are talk as high as 60% compared to this time last year. >> aetna drawing scrutiny. saying there may be some connection between a merger denied by doj. nevertheless, they say they are losing money becseau older sicker people are buying into the sysm than younger healthier people. mo money going out drives competitn your pris go up. >> that's exactly what happens. theyent out a let and sawed we want to murj with humana. that's is going to save us. the department of justice said we're not going to let that happen. they said then we're gone. we're gone from eleven states including florida. so there was some talk as to whether that was just a see we told you so. you didn't give us our way. their ais, no. it's not that. we could not stay for all of these sick people. >> boie, thank you f

. >>> when we come back, aetna's withdrawal from many exchanges prompts a fierce debate.te on the future of the health care law next. ♪ ♪ . . hhis stellar notebooks will last through june. get back to great. this week sharpie twelve-packs just three dollars. office depot officemax. gear up for school. gear up for great. i am totally blind. i lost my sight in afghanistan. if you're totally blind, you may also be struggling with non-24. calling 844-844-2424. or visit my24info.com. ♪ ♪ >>> aetna's decision to withdraw from obamacare exchanges in nearly a dozen states could potentially rock the election. donald trump addressed the insurance giant's move in last night's speech. >> we're going to get rid of obamacare, repeal it and replace it. it's caused soaring double digit premium increases and we're going to give choice to patients and consumers across our land. aetna just today announced that they are dropping out, as are many of the major insurance companies. obamacare is a disaster. >> hillary has yet to respond to this latest news but has recently thrown her support beh