Things just keep getting worse for Obamacare. It’s horrible for consumers. Co-ops are dropping like flies. Now UnitedHealthcare, the largest health insurer in the nation, is considering getting out of the Obamacare exchanges because of heavy losses. This statement in a press release sums it up.
“In recent weeks, growth expectations for individual exchange participation have tempered industrywide, co-operatives have failed, and market data has signaled higher risks and more difficulties while our own claims experience has deteriorated.”
They don’t expect things to improve.
Insurers have had trouble signing up young and healthy individuals on the Obamacare exchanges, which is necessary to offset the costs of covering older and sicker enrollees. This has forced insurers to hike premiums, raise deductibles, and slash the number of doctors and hospitals offered on its plans. Meanwhile, the Obama administration has cut its enrollment expectations for 2016 to about half of what they were when the the legislation became law.
In a conference call with investors, Hemsley offered a sober assessment of the exchanges’ future viability. He said that claims data have been getting worse as time has gone on, and there’s no evidence pointing toward improvement. (Read More)
In 2017 insurers will lose a lot of help from the federal government, and they won’t be able to continue to sustain the heavy losses. So if you like your health plan you probably won’t be able to keep it.