Comment: We told y’all. Despite premiums hitting 53% higher than before Obamacare, America has still not seen the real cost of Obamacare. Why? Because as proved by insurers’ losses, policies are still being sold far below cost, exactly as OCTS has repeatedly warned.
What’s the bottom line? This can only mean one of three things: huge premium increases in the near future, more insurers heading for the exits, less competition, or all of the above.
“UnitedHealth, the nation’s biggest health insurer, will cut its participation in public health insurance exchanges to only a handful of states next year after expanding to nearly three dozen for this year.”
“CEO Stephen Hemsley said Tuesday that the company expects losses from its exchange business to total more than $1 billion for this year and last. He added that the company cannot continue to broadly serve the market created by the Affordable Care Act’s coverage expansion due partly to the higher risk that comes with its customers.”
“UnitedHealth Group Inc. said it now expects to lose $650 million this year on its exchange business, up from its previous projection for $525 million. The insurer lost $475 million in 2015, a spokesman said.”
UnitedHealth to trim ACA exchanges to ‘handful’ of states
By TOM MURPHY, AP Business Writer
Apr 19, 2016