United Healthcare Exiting State Exchanges

United Healthcare, the nations largest insurer, has announced that it will exit the PPACA Exchange markets in AL, AR, CO, CT, GA, LA, MD, MI, MO, NE, NC, OK, PA, TN, TX and WA. No decision has been announced regarding AZ and other states.

Chief Executive Officer Stephen Hemsley said that the company next year “will remain in only a handful of states.” The exchange market is proving to be smaller and riskier than UnitedHealth had expected, meaning “we cannot broadly serve it on an effective and sustained basis.” The company expects to lose about $650 million on the plans this year.

UnitedHealth’s decision to stop offering PPACA exchange plans next year means that current clients in those states will have to choose a new health insurance provider next year. This decision will not affect current policyholders until January 1, 2017.

Unfortunately, over 25 health insurance carriers have exited the market since 2010, due to losses caused by the Affordable Care Act (aka Obamacare) and I expect more to follow.

Published in: on April 18, 2016 at 3:07 PM  Leave a Comment  

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