UnitedHealth sees major losses through participation in insurance exchanges
UnitedHealth, the largest health insurance provider in the United States, has been suffering major losses by participating in insurance exchanges. These losses are also due to the provisions of the Affordable Care Act, which has pushed the insurer from exiting from exchanges entirely. Last month, the insurer has sounded somewhat optimistic concerning its performance in the exchanges, but now sees these marketplaces as a detriment to its business.
Insurers are beginning to express doubts that exchanges are viable
In the early years of insurance exchanges, companies had expressed concerns over whether or not these marketplaces would be viable. Some large insurers managed to find success early on, but have begun to see losses as a result of how exchanges operate and the rapidly growing number of people using their insurance policies to cover medical care. In order to recover from these losses, most insurers have begun raising premiums on the policies they offer through exchanges. But a growing number of insurers are beginning to question whether participating in these exchanges is viable or not.
Exchanges remain stable, according to HHS
According to the Department of Health and Human Services, exchanges remain stable, experiencing “vibrant growth” despite the concerns issued by insurers. UnitedHealth decided to leave exchanges entirely could call this into question, however, and the company has already begun pulling back on marketing its policies during the current enrollment period. While UnitedHealth is already set to provide coverage through exchanges throughout 2016, the company will no longer be participating in exchanges in 2017. The insurer is currently working to limit the number of policies it is selling during the open enrollment period.
Health insurance co-ops continue to fail, placing more scrutiny on the Affordable Care Act
Adding to the problems that the Affordable Care Act has been experiencing lately is the failing of many federally backed health insurance co-ops. These co-ops were meant to serve alongside insurance exchanges, operating as non-profit organizations that offer insurance coverage to consumers. Unfortunately, most of these co-ops have failed, falling into financial ruin, with many throughout the country ceasing services.