Cracks appear in Obamacare: largest U.S. health insurer considering exiting

November 19, 2015, 7:13 pm
  


 



Despite the fact that the “Obama administration pointed out that many people are signing up for Affordable Care Act policies:”

… The biggest U.S. health insurer is considering pulling out of Obamacare as it loses hundreds of millions of dollars on the program, casting a pall over President Barack Obama’s signature domestic policy achievement.

UnitedHealth Group Inc. has scaled back marketing efforts for plans sold to individuals this year and may quit the business entirely in 2017. …

While UnitedHealth has been slower than some of its rivals to sell Obamacare policies, the announcement may indicate that other insurers are struggling, said Sheryl Skolnick, an analyst at Mizuho Securities.

“If one of the largest and presumably, by reputation and experience, the most sophisticated of the health plans out there can’t make money on the exchanges, then one has to question whether the exchange as an institution is a viable enterprise,” Skolnick said. …

Generally, free markets tend to be accurate predictors of major economic trends.



Related: Economy, Health, Obama


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