The Country’s Largest Health Insurer to Drop Obamacare

The other shoe has dropped. Last November, United Healthcare announcing they were considering exiting the Obamacare exchange marketplace because they lost almost a half a billion dollars selling Obamacare plans. Earlier this week it was announced that United Healthcare, the country’s largest insurer announced that they will pull out of Arkansas, Georgia and Michigan exchanges.
Today United Healthcare announced the will indeed stop offering plans in most of the healthcare exchanges.

But UnitedHealth Group hasn’t fared so well in the exchanges created in many states by the Affordable Care Act. In an earnings call with investors Tuesday, UnitedHealth Group’s CEO Stephen Hemsley said that the smaller market size, and the higher risks in the short term of those exchanges are limiting the company’s ability to continue providing services. While the company services 795,000 people through public marketplaces as of March, that number is expected to drop to 650,000 by December.

“Next year we will remain in only a handful of states,” Hemsley said, adding that the company doesn’t plan to have financial exposure to any exchanges in 2017.

Hemsley added “The smaller overall market size and shorter-term, higher-risk profile within this market segment continue to suggest we cannot broadly serve it on an effective and sustained basis.”

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As we reported last week even more companies are warning they may drop their exchange plans

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