UnitedHealth Exits Obamacare Exchanges

This includes leaving Michigan’s state exchange, along with many others.

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UnitedHealth Group Inc. is struggling under Obamacare and is leaving the exchange in many states. UnitedHealth will continue to sell individual plans in several states.

UnitedHealth is the largest health insurer in the United States and previously offered plans through the exchange in 34 states.

UnitedHealth has not stated which states it will continue to sell individual plans in, but it has already partially left Arkansas, Georgia, Louisiana, Michigan and Oklahoma.

Why the departure?

The insurance company recorded Affordable Care Act (“ACA”) losses of over $1 billion in 2015 and 2016.

Those covered by UnitedHealth will need to choose a new health insurance provider next year. Current coverage is not affected.

Despite the losses under Obamacare on healthcare.gov, UnitedHealth’s other ventures have been successful. The company signed many sicker-than-expected members up through the exchange, resulting in losses.

Insurers have until May 11, 2016 to file their rates for 2017 with the government.

UnitedHealth’s departure is expected to have only a small effect on competition in the marketplace. UnitedHealth expects its exchange membership to decline to 650,000 by December 2016.

We help our clients pick adequate plans for their practices and help to ensure compliance with the Affordable Care Act.

In our next blog post, we will keep you informed of related issues.  To get this important information delivered directly to your mail box, 

Do you need help staying current and compliant with the latest laws, rules and regulations?  We can help. To contact us about your new government rules and regulations, your practice’s risk assessment, or about your other legal needs:  CLICK HERE.

P.S. If you or your patients are interested in consumer healthcare issues, check out myhealthspin.com.

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