UnitedHealth threatens exit from Obamacare plans
UnitedHealth Group Inc. has revealed that it is going to face huge losses through the Affordable Care Act’s exchanges. It has also said that it is thinking of actually withdrawing from it.
UnitedHealth is the biggest U.S. health insurer and if it is going to face mounting losses due to Affordable Care Actâ€™s exchange, the same thing might be happening with other health insurers across the US.
Now in a statement UnitedHealth said that it is pulling back on marketing its exchange products, as open enrollment is currently under way for plans that will take effect in 2016. The company in a statement went on to add that it is “evaluating the viability of the insurance exchange product segment and will determine during the first half of 2016 to what extent it can continue to serve the public exchange markets in 2017.”
UnitedHealth is not the only health care insurer who has come out in the open sounding alarm bells. Several other insurers have been sounding alarms about their exchange business. Now UnitedHealth has gone a step further flagging the recent rapid deterioration of its performance and raising concerns about future viability. UnitedHealth Group Inc. is not just the biggest health insurer in the US, it is also No. 14 on the Fortune 500 list. Through its family of subsidiaries and divisions, UnitedHealth Group serves approximately 70 million individuals throughout the United States. In 2015, the company reported net income of $8.4 billion. It is headquartered in Minnetonka, Minnesota