Here is what was written this morning. UnitedHealth warns it may exit Obamacare plans
I think a significant quote for us is that they expect $425 less revenue due to exchange plans.
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Oh, and I didn't notice before that this $425 million is for the 4th quarter of 2015. That's quite significant.
I think a significant quote for us is that they expect $425 less revenue due to exchange plans.
Insurance giant UnitedHealth Group dealt a blow to the Affordable Care Act on Thursday when it warned that it may stop offering insurance plans to individuals through the public exchanges established by the reform law.
In a surprise, UnitedHealth (UNH) downgraded its earnings forecast in a sign that ACA, commonly referred to as Obamacare, is taking a toll on the company’s bottom line.
People who purchase plans through the public exchanges are typically heavy users of their plans, draining insurers' profits.
“The company 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,” UnitedHealth said in a statement.
UnitedHealth warned investors that it would reap $425 million less in revenue during the fourth quarter than it had previously expected, which translates into 26 cents in earnings per share.
The company lowered its full-year 2015 earnings-per-share forecast to $6.
Shares of UnitedHealth stock fell 4% to $112.65 in early trading.
UnitedHealth blamed “a continuing deterioration” in the financial prospects of health care plans provided to individuals who purchase insurance through exchanges established by Obamacare.
“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,” UnitedHealth CEO Stephen J. Hemsley said in a statement.
Executives told investors in a conference call that insurance holders who sign up after the open enrollment period are particularly expensive. They have been among the most active users of the insurance plans.
Obamacare established a network of federal and state websites through which individuals who do not have insurance through their employer can obtain coverage — often with federal tax credits and subsidies.
Insurers’ participation in the exchanges is optional.
In a surprise, UnitedHealth (UNH) downgraded its earnings forecast in a sign that ACA, commonly referred to as Obamacare, is taking a toll on the company’s bottom line.
People who purchase plans through the public exchanges are typically heavy users of their plans, draining insurers' profits.
“The company 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,” UnitedHealth said in a statement.
UnitedHealth warned investors that it would reap $425 million less in revenue during the fourth quarter than it had previously expected, which translates into 26 cents in earnings per share.
The company lowered its full-year 2015 earnings-per-share forecast to $6.
Shares of UnitedHealth stock fell 4% to $112.65 in early trading.
UnitedHealth blamed “a continuing deterioration” in the financial prospects of health care plans provided to individuals who purchase insurance through exchanges established by Obamacare.
“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,” UnitedHealth CEO Stephen J. Hemsley said in a statement.
Executives told investors in a conference call that insurance holders who sign up after the open enrollment period are particularly expensive. They have been among the most active users of the insurance plans.
Obamacare established a network of federal and state websites through which individuals who do not have insurance through their employer can obtain coverage — often with federal tax credits and subsidies.
Insurers’ participation in the exchanges is optional.
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Oh, and I didn't notice before that this $425 million is for the 4th quarter of 2015. That's quite significant.
