USAToday reports, one of the nation’s largest insurers, UnitedHealthcare, may leave the Obamacare exchanges at the end of 2017. The parent company UnitedHealth Group has indicated it is losing too much money from plans purchased in the exchanges. This, as the price of a plan for a 40 year old non smoker is set to rise by 10.1%.
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.
The Obama administration sees the growth in the number of insurers in the exchanges as progress.
Unitedhealth executives say the highest growth in users comes from those unemployed or starting a family. These tend to be heavy users of the cheaper plans.