United Health Care - Opting Out of Most Exchanges!

[Post Quartermaster]

Those two states must have bad losses. For UHC to opt out without even filing rates is definitely a sign of losses they don't think will turn around.

My guess is that they're pulling out of Georgia mostly due to being behind the ball on market share. They had horrible rates in the majority of the state for 2016. Not sure what their total enrollment was for 2016, but cannot imagine it was good at all given the competition from Humana, Blues & Ambetter.

 

[AllenChicago]

April 15, 2016

Goodbye Michigan for 2017.
UnitedHealth to Exit Michigan Obamacare Exchange, State Says - Bloomberg

 

[hockeyday]

no big deal they were only in 3 counties and way over priced, big question is what will they do with their grandfather plans? I got a boat load of those, any info?

 

[somarco]

GF plans apparently haven't been an issue, only the new Obamacrap plans.

 

[scagnt83]

no big deal they were only in 3 counties and way over priced,

How can you call something overpriced when all the others are losing money?

Maybe they were properly priced and found that it was not worth it when others are willing to run int the red? Or maybe they still lost money despite being more than the others? Are they still overpriced? (UH lost close to half a billion last year on exchange business)


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I see UH pulling out of the exchange (all over) as a really big deal. They took grief from the White House and the Dems when they chose not to play. I think this whole thing was planned to a tee by UH (and perhaps the industry at large). They got into the exchange just so they could say they gave it a shot.

They also now have definitive statistics, specific to them, to show that it is unprofitable. They chose to participate in some of the smallest markets in the country which means minimal risk.
They took as little risk as possible from a financial standpoint... reaped positive PR because of it initially... and now are making big political waves upon exit during a POTUS election year.


I think this was a lot more strategic than most realize. Just wait as more info comes out about 2016 losses on Exchange business. They expect "OVER $500mm in losses" from Exchange Plans in 2016.

How much do you want to bet all the insurers make a HUGE PR fan fare about 2016 loses when they release Q3 reports this year?? .... right before the election...

 

[RayNY]

How can you call something overpriced when all the others are losing money?

Maybe they were properly priced and found that it was not worth it when others are willing to run int the red? Or maybe they still lost money despite being more than the others? Are they still overpriced? (UH lost close to half a billion last year on exchange business)

Remember how the Risk Corridor only paid out about 12% of what was expected/requested? The market as a whole is way under-priced. UHC is one of the few that priced appropriately. Even then, costs were higher than estimated, and any profit just went towards indemnifying competitors of their losses, incurred while taking market share with low prices.

It's a lose-lose. Either price appropriately and lose market share while paying profits to competitors, or price low, keep market share, and lose money.

 

[AllenChicago]

Remember how the Risk Corridor only paid out about 12% of what was expected/requested? The market as a whole is way under-priced. UHC is one of the few that priced appropriately. Even then, costs were higher than estimated, and any profit just went towards indemnifying competitors of their losses, incurred while taking market share with low prices.

It's a lose-lose. Either price appropriately and lose market share while paying profits to competitors, or price low, keep market share, and lose money.

That's how you drive health insurers out of Individual Market. Had to be by design, considering that the Feds know this, but don't even address fixing it.

 

[RayNY]

That's how you drive health insurers out of Individual Market. Had to be by design, considering that the Feds know this, but don't even address fixing it.

We've been saying that on these forums for years.

I don't know what's scarier, politicians incompetent to pass this without realizing, or politicians smart and sneaky enough to create this with intent and pass it off as incompetence?

 

[Tkruger]

The sky is falling...the sky is falling!!!!

Obamacare premiums would spike if UnitedHealth withdraws, reducing competition: study - Washington Times

Premiums would/will spike, DOI's won't allow the size of increase carriers want and other carriers would jump ship.

Called it!

 

[AllenChicago]

Why would the DOI or HHS deny a premium increase?

Those who are most needy will have that increase covered by the Taxpayer.

A 30%-40% premium increase is pocket change for a family of 4 living high off the hog @ 401% of FPL.