UnitedHealth Weighs Leaving Obamacare Marketplace, Stock Drops
I read the headlines in the USA Today paper (at work) and they have "decided" to leave in 2016 and are pulling all their low-rate plans due to lack of "paying" enrollments and the "heavy use" and entitlement strain on the system costing them $430+Million this last quarter of 2015 and bringing down their stock.
They insure over half a million people under low cost plans who will now have to seek another market for their healthcare even with the rising costs
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UnitedHealth's announcement comes as other insurers have been sounding alarms about their exchange business, but the big insurer went considerably farther than its peers in flagging the recent rapid deterioration of its performance and raising concerns about future viability. UnitedHealthalso changed its own tone markedly from its Oct. 15 earnings call, when it said it expected "strikingly better" results on the exchanges in 2016, due partly to price increases that it said averaged in the double digits.
The impact of the insurance industry's struggles is already clear in the products currently on offer in the marketplaces, many of which are aimed at stanching a flood of red ink. For these plans, which will take effect in 2016, many insurers have raised premiums in order to cover the medical costs of enrollees, which have run higher than many companies originally projected, fueling this year's losses. Insurers have also shifted to offering more limited choices of health-care providers. The majority of the startup cooperative insurers created under the health law are slated to shut down.
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Obozocare is imploding and United Health is one of the biggest providers of coverage outside the exchanges for the ACA.
http://usatoday30.usatoday.com/video/unitedhealth-group-may-leave-obamacare-whats-next/4621980527001
Edited by
Sojourning_Soul
on Fri 11/20/15 05:58 AM