UnitedHealthcare may leave the ObamaCare exchanges

[Bill the Cat]

http://thehill.com/policy/healthcare...care-exchanges

One of the country’s largest health insurers warned Thursday that it may leave the ObamaCare exchanges within two years, delivering a shock announcement that could ripple through the marketplace.

At a shareholder meeting Thursday, UnitedHealthcare cast doubt on its ability to carry plans on the healthcare law’s exchanges beyond 2016, offering a more grim financial outlook than it had previously expected.


“In recent weeks, growth expectations for individual exchange participation have tempered industrywide," said Stephen Hemsley, the company's CEO.
"Co-operatives have failed, and market data has signaled higher risks and more difficulties while our own claims experience has deteriorated, so we are taking this proactive step,” he said.

The company's statement said it will be “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.”

It also projected that its fourth-quarter revenue will be $425 million less than expected — amounting to 26 cents in earnings per share.

The company also announced it has “pulled back” on marketing plans for 2016.

Hemsley's mention of the ObamaCare co-operatives, or co-ops, refers to the half-dozen startup insurers that have collapsed in the past few weeks.

Opponents of the healthcare law have seized on the closure of the co-op insurers, which were intended to increase competition, and highlighted the troubles in hearings on Capitol Hill.

Fewer than half of the original 23 co-ops are still running, and only a handful are on solid financial footing.

[Cow Poke]

But but but... Obamacare is working so wonderfully well! There are charts and graphs!!!

[Bill the Cat]

But but but... Obamacare is working so wonderfully well! There are charts and graphs!!!

And Starlight is their king...

charts_and_graphs_08.jpg

[rogue06]

http://thehill.com/policy/healthcare...care-exchanges

One of the country’s largest health insurers warned Thursday that it may leave the ObamaCare exchanges within two years, delivering a shock announcement that could ripple through the marketplace.

At a shareholder meeting Thursday, UnitedHealthcare cast doubt on its ability to carry plans on the healthcare law’s exchanges beyond 2016, offering a more grim financial outlook than it had previously expected.


“In recent weeks, growth expectations for individual exchange participation have tempered industrywide," said Stephen Hemsley, the company's CEO.
"Co-operatives have failed, and market data has signaled higher risks and more difficulties while our own claims experience has deteriorated, so we are taking this proactive step,” he said.

The company's statement said it will be “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.”

It also projected that its fourth-quarter revenue will be $425 million less than expected — amounting to 26 cents in earnings per share.

The company also announced it has “pulled back” on marketing plans for 2016.

Hemsley's mention of the ObamaCare co-operatives, or co-ops, refers to the half-dozen startup insurers that have collapsed in the past few weeks.

Opponents of the healthcare law have seized on the closure of the co-op insurers, which were intended to increase competition, and highlighted the troubles in hearings on Capitol Hill.

Fewer than half of the original 23 co-ops are still running, and only a handful are on solid financial footing.

I think I remember reading something about that a few days ago

The same United HealthCare that is threatening to withdrawal from Obamacare after suffering massive loses?

Source: Biggest Insurer Threatens to Abandon Health Law

The biggest U.S. health insurer said it has suffered major losses on policies sold on the Affordable Care Act’s exchanges and will consider withdrawing from them, adding to worries about the future of the marketplaces at the heart of the Obama administration’s signature health law.

The disclosure by UnitedHealth Group Inc., which had just last month sounded optimistic notes about the segment’s prospects, is the latest sign that many insurers are finding the new business unprofitable, despite an influx of customers that has helped swell revenues.

The industry’s woes, and broad rate increases aimed at stanching the red ink, are putting pressure on the Obama administration to tweak aspects of the law; the issues also risk pulling the ACA back into the political spotlight.

...

Exchanges represent a small share of UnitedHealth’s overall membership and revenue. But the company said its operating loss for the exchange business this year will amount to about $700 million, or 45 cents a share, including $275 million that will represent “advance recognition of losses” for 2016. The company said it was projecting an additional $200 million to $225 million in losses for next year that it wouldn’t include in its 2015 results. UnitedHealth said it was revising its 2015 earnings projection to $6 a share, from a previous range of $6.25 to $6.35.



Source

© Copyright Original Source

Source: UnitedHealth Weighs Leaving Obamacare Marketplace, Stock Drops

UnitedHealthGroup Inc. said it expects major losses on its business through the Affordable Care Act's exchanges and will consider withdrawing from them, in the most prominent signal so far of health insurers' struggles with the health law's marketplaces.

The disclosure by the biggest U.S. health insurer, which had just last month sounded optimistic notes about the segment's prospects, will sharply boost worries about the sustainability of the law's signature marketplaces, amid signs that many insurers' losses on the business continue to mount.

UnitedHealth Group's chief executive, Stephen J. Hemsley, said it made the move, which included a downgrade of its earnings projections for 2015, amid reduced growth expectations, the expected shutdowns of the majority of the health law's nonprofit cooperative insurers, and signs that its own enrollees continue to increase their use of medical services, raising costs.

As a result, UnitedHealth said it is pulling back on marketing its exchange products, as open enrollment is currently under way for plans that will take effect in 2016. And the insurer said 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." UnitedHealthhad previously expanded its exchange offerings to 11 new states for 2016, and said in October it had around 550,000 people enrolled.

UnitedHealth said it was revising its 2015 earnings projection to $6 a share, from a previous range of $6.25 to $6.35. The move reflected "pressure" of $425 million, or 26 cents a share, tied to individual plans sold under the health law, it said. The $425 million includes $275 million related to the "advance recognition" of losses it expects to incur in 2016. UnitedHealthalso said it expects its 2016 earnings to be between $7.10 and $7.30 per share in 2016; previously, the company said it thought next year's earnings would be within the range of analysts' projections, then around $7.09 to $7.55.

Chris Rigg, an analyst with Susquehanna Financial Group, wrote that it was likely "this is more of an industry issue," and if the exchanges don't stabilize, he would expect UnitedHealth to "exit this business line."



Source

© Copyright Original Source

[One Bad Pig]

And Starlight is their king...

[ATTACH=CONFIG]11598[/ATTACH]

Replace the red with "Data from online studies" and you've nailed it.