United Health Bails

From WP:

"UnitedHealth Group to exit Obamacare exchanges in all but a ‘handful’ of states"

 

UnitedHealth Group, the nation's largest health insurer, said Tuesday that in 2017 it will exit most of the 34 states where it offers plans on the Affordable Care Act insurance exchanges. "We will be down to a handful of states that we will be actively participating in the exchanges," Stephen J. Hemsley, chief executive officer of UnitedHealth Group said in an earnings call, noting that the small market size and greater expense of patients insured through the marketplaces led the insurer to make the decision. UnitedHealth plans to withdraw from health insurance marketplaces in Arkansas, Michigan, Connecticut and parts of Georgia. The decision is a sequel to an announcement by executives late last year that the insurer had suffered financial losses and might leave the health exchanges altogether in 2017. UnitedHealth reported that it expects to lose $650 million in the exchanges in 2016. Although UnitedHealth is the nation's biggest health insurer, it was slow to enter the exchanges in 2014, rolling out plans in just four states initially. In the call, executives said they cover 795,000 people through the exchanges and expect that number to drop to 650,000 by December. There are 12.7 million people insured through the state and federal marketplaces, according to the latest data. Several observers said that while the decision is a clear signal of the troubles insurers face in making money in the marketplaces, it doesn't mean that other companies will follow suit. "This is an industry problem. A lot of them [insurers] are losing money in a number of states," said Ana Gupte, a senior analyst in healthcare services at Leerink Partners. The true impact of UnitedHealth's departure will vary by location, according to a new report by the Kaiser Family Foundation. That analysis found that, if United were to drop out of all the states, 1.1 million people in the exchanges would have just one option for an insurer, provided no other insurers rushed in to fill the gap. United's announcement comes as other insurers have indicated concern over how they are faring in the marketplaces created by health reform, as well. Last month, the Blue Cross Blue Shield Association released a report indicating that new members who enrolled in individual plans used more medical services of all kinds and accounted for health care spending 22 percent higher than people with employer-based insurance in 2015.

 

 

^ This seems to be the beginning of the end to Obama's health exchanges. I can't say I am surprised as  I have said from the beginning this is a very bad way to reform healthcare. Not only are patients having to pay a lot more (for doctor's visits, ERs, prescriptions, etc) since Obamacare, but it seems the health insurance companies aren't doing so well either. I wonder who, if anyone, is benefitting from Obamacare because I can't see any winners. ^

 

 

https://www.washingtonpost.com/news/wonk/wp/2016/04/19/unitedhealth-group-to-exit-obamacare-exchanges-in-all-but-a-handful-of-states/?postshare=4741461115626571&tid=ss_fb