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Humana HUM +0.00% (HUM) said it will discontinue several products offered on government-run exchanges under the Affordable Care Act, impacting about 100,000 individuals currently covered by the insurer’s plans across the country.
The move, disclosed this morning in the company’s third-quarter earnings report, comes due to higher-than expected medical costs from sick newly insured patients covered under the health law.
“Operating results for the company’s individual commercial medical business continue to be challenged primarily due to the volatility related to the start of the healthcare exchange program created under the Affordable Care Act as well as the morbidity of membership served under this relatively new program,” Humana said in a statement this morning.
The plans Humana will discontinue had “product designs which attracted a higher-utilizing member base than was assumed when the 2015 plan offerings were priced,” the company said but didn’t specify the kind of plans that will be pulled. “The transitory nature of the population served has also contributed to use of emergency room services and non-participating providers above priced-for levels.”
Humana HUM +0.00% (HUM) said it will discontinue several products offered on government-run exchanges under the Affordable Care Act, impacting about 100,000 individuals currently covered by the insurer’s plans across the country.
The move, disclosed this morning in the company’s third-quarter earnings report, comes due to higher-than expected medical costs from sick newly insured patients covered under the health law.
“Operating results for the company’s individual commercial medical business continue to be challenged primarily due to the volatility related to the start of the healthcare exchange program created under the Affordable Care Act as well as the morbidity of membership served under this relatively new program,” Humana said in a statement this morning.
The plans Humana will discontinue had “product designs which attracted a higher-utilizing member base than was assumed when the 2015 plan offerings were priced,” the company said but didn’t specify the kind of plans that will be pulled. “The transitory nature of the population served has also contributed to use of emergency room services and non-participating providers above priced-for levels.”
