Come 2017, there's a chance UnitedHealth Group will no longer be a part of ObamaCare. The nation's largest health insurer announced Thursday that, after taking into account losses of $275 million on plans sold through the Affordable Care Act exchanges, it would be slashing its 2016 earning projections and re-evaluating whether it would participate in the program in 2017. An estimated 550,000 people are currently enrolled in the insurer's exchange plans.
UnitedHealth's announcement marks a big change of heart for the company, which said just a month ago that it was optimistic about seeing "strikingly better performances on the insurance exchange business" in 2016.
Compare that to what UnitedHealth CEO Stephen Hemsley said Thursday: "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, so we are taking this proactive step."
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The insurer has reduced its outlook for fourth-quarter earnings by $425 million. If UnitedHealth decides to bail come 2017, it would strike a major blow to ObamaCare.
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