UnitedHealth Group, the greatest health insurer in the U.S., will pull out of most states’ Obamacare exchanges next year, the company declared on the day of Tuesday.
UnitedHealth cited about $1 billion in losses over the past 2 years for the firm’s decision to significantly scale back its business on the health insurance exchanges created by the Affordable Care Act.
UnitedHealth offers policies on the exchange marketplaces in 34 states this year, but will merely remain in a “handful” of states in the year 2017, UnitedHealth CEO Stephen Hemsley claimed during a conference call on the company’s quarterly earnings. The company cautioned in the month of November it might bail on the marketplaces nationwide.
The UnitedHealth Group announcement and warning symbols from other health insurers that Obamacare enrollees are costlier than hoped to serve as a reminder of how new and how fragile the health insurance exchange marketplaces are ahead of the open enrollment period for the year 2017 coverage, which begins this fall.
President Barack Obama’s health care overhaul may have extended health coverage to an estimated 20 million persons and brought the uninsured amount to an all-time low, but its future sustains to be uncertain as market dynamics continue to play out. No matter what UnitedHealth Group may be doing next year, it is going to take longer than that to determine whether the regulated, subsidized health insurance exchange market will be viable long period.
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