UnitedHealth to Exit Key ACA Market
May 31 2016 - 11:00PM
Dow Jones News
UnitedHealth Group Inc. told brokers that it has filed paperwork
to offer plans in just six states' health-law marketplaces next
year, providing the most complete picture so far of its previously
announced widespread withdrawal.
The biggest U.S. health insurer said in April that it would pull
out of all but a handful of the 34 states where it was selling the
Affordable Care Act exchange plans, in the wake of mounting losses
in that business.
Since then, the insurer's 2017 exchange decisions have been
emerging piecemeal as various state regulators disclosed that
UnitedHealth wouldn't be in their exchanges next year.
Tuesday, California officials became the latest to say
UnitedHealth was leaving, when a spokesman for the Covered
California exchange confirmed that the insurer wouldn't participate
in 2017. UnitedHealth had about 1,200 Covered California enrollees,
the spokesman said.
In a posting Tuesday on a private website it maintains for
brokers, UnitedHealth said "at this time, we have filed to offer
On-Exchange products" in Nevada, New York and Virginia for
2017.
Moreover, the company's small Harken Health subsidiary, which
builds plans around primary-care clinics, will sell plans in
Georgia, Illinois and Florida on a "limited basis," the posting
said. The Wall Street Journal reviewed the language of the
posting.
UnitedHealth also told brokers that during the next few weeks it
would begin informing consumers enrolled in its exchange plans in
states where it will pull out. Existing plans are effective through
the end of 2016, and consumers can switch to different insurers
during the fall's open enrollment period.
UnitedHealth said in April it had about 795,000 exchange
enrollees at the end of the first quarter.
In a statement Tuesday, UnitedHealth said "the smaller overall
market size and shorter term, higher risk profile within this
market segment continue to suggest we cannot broadly serve it on an
effective and sustained basis." But it said the company is "an
advocate for more stable and sustainable approaches to serving
exchange markets and those who rely on it for care."
In a separate statement provided to the Journal, Harken Health
said it would open a dozen of its health centers in Miami and the
Fort Lauderdale area, after receiving approval to sell plans in
Florida. Harken said it also would add new clinics in its Atlanta
and Chicago markets.
Overall, insurers' approach to the exchanges for next year is
mixed, in the wake of financial results that have been
disappointing for many companies. Humana Inc., which has suffered
losses in its exchange business, is pulling out of some areas.
Many other insurers are sticking with the new marketplaces,
though state filings have shown that several are seeking
significant rate increases for next year.
Anthem Inc. has said it would continue selling exchange plans in
its current 14 states. Aetna Inc. will remain in its 15 states and
has said it may enter more, and Cigna Corp. plans to extend beyond
the seven states where it currently sells exchange plans.
Write to Anna Wilde Mathews at anna.mathews@wsj.com
(END) Dow Jones Newswires
May 31, 2016 23:45 ET (03:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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