UnitedHealth Pulling Out of All But 'Handful' of Obamacare Markets

Newsmax
Tuesday, 19 Apr 2016 10:19 AM
Image: UnitedHealth Pulling Out of All But 'Handful' of Obamacare Markets

UnitedHealth, the nation's biggest health insurer, will remain in public health insurance exchanges in only a handful of states next year after expanding to 34 this year.

CEO Stephen Hemsley told analysts Tuesday morning that the company cannot continue to broadly serve the market created by the Affordable Care Act's coverage expansion due in part to the higher risk that comes with its customers.

The state-based exchanges are a key element behind the Affordable Care Act's push to expand insurance coverage. But insurers have struggled with higher than expected claims from that business.

UnitedHealth Group Inc. has estimated that it could lose as much as $475 million on its public exchange business this year. It has already decided to pull out of Arkansas, Georgia and Michigan in 2017.

Comment:

Short article, but it says a lot.  It seems that the media is downplaying this little tidbit of news.  It confirms what we said would happen when Obamacare was first passed.  Many insurance companies want out because with the low premiums the government requires for these insurance exchanges, some companies claim that not only are they not making any money, but they are losing money.

Just wait until illegal aliens are allowed to buy insurance on these exchanges.  The insurance companies will lose even more money and more will pull out.

What we need is a system like NS Germany.  We need a government insurance company where the premiums are set to sustain the office and not to make a profit.  Of course, all these for profit insurance companies would never stand for that.

Dan 88!

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