U.S. health insurer UnitedHealth stated on the day of Tuesday that it would largely exit the Obamacare individual insurance market in the year 2017, citing expectations for mounting losses from the program.
UnitedHealth is the greatest U.S. health insurer and one of the biggest sellers of plans on the exchanges, which were made as part of President Barack Obama's national healthcare law. UnitedHealth sells these plans in 34 states this year, up from 25 states previous year.
"Next year, we will remain in only a handful of states," UnitedHealth CEO Stephen Hemsley said in prepared remarks as part of the company's first-quarter earnings report.
The company alerted the investors late last year that it was losing money on the new plans and might exit the market. On Tuesday, the company raised its 2016 expectation for losses on the exchanges by $125 million to $650 million.
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