Major Health Insurer Bailing On Most Obamacare Exchanges

UnitedHealth Group’s decision underscores challenges facing the Affordable Care Act marketplaces.


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.... serve as a reminder of how new and how fragile the health insurance exchange marketplaces are ahead of the open enrollment period for 2017 coverage, which begins this fall.

At the end of the 2016 sign-up period in February, close to 13 million people had private health insurance obtained via the exchanges. But enrollment may have virtually plateaued, the Congressional Budget Office projects modest growth in future years, and concerns remain that younger, healthier consumers don’t consider the coverage to be affordable or a good value.

“Our own experience and performance have been unfavorable in these markets. The smaller overall market size, the shorter-term, higher-risk profile within this market segment continue to suggest we cannot broadly serve it on an effective and sustained basis. Next year, we will remain in only a handful of states,” Hemsley said during the conference call.
The Huffington Post

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Other insurers, including Humana and Blue Cross Blue Shield of North Carolina, also have publicly weighed ending their participation in the exchanges because of losses related to attracting too many sick customers and too few healthy ones.