Major insurer UnitedHealth, which caused a stir in the fall by saying it might leave Obamacare, lost $720 million from the individual health insurance market last year.
However, the country’s largest insurer still made a ton of money.
UnitedHealth said in its financial report released Tuesday that the $720 million comes from losses “related to the individual exchange-compliant insurance business.” The individual marketplace includes Obamacare.
The nation’s largest health insurance provider dealt a blow to the Affordable Care Act on Thursday. UnitedHealth Group warned it may stop offering coverage to individuals through public exchanges after taking a big hit to its bottom line.
The insurer’s withdrawal from the Obamacare exchanges would force some 540,000 Americans to find coverage from another provider.
UnitedHealth (UNH) downgraded its earnings forecast, bemoaning low growth projections for Obamacare enrollment and blaming the federal health care law for giving individuals too much flexibility to change plans. People who purchase insurance through the public exchanges are typically heavy users of their plans, draining insurers’ profits, analysts say.
The nation’s largest health insurance provider said it lost money due to Obamacare’s disappointing enrollment and unintended consequences.
“The insurer’s withdrawal from the Obamacare exchanges would force nearly 550,000 Americans to find coverage from another provider,” USA Today reported. “UnitedHealth downgraded its earnings forecast, bemoaning low growth projections for Obamacare enrollment and blaming the federal health care law for giving individuals too much flexibility to change plans.”
“People who purchase insurance through the public exchanges are typically heavy users of their plans, draining insurers’ profits, analysts say.”
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