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Mega-Medical Insurer May Exit Obamacare Exchanges Due to Falling Profits

Humana reports it doesn’t expect to make enough money to cover claims

AP
January 14, 2016

Mega-medical insurer Humana Inc. may exit Obamacare exchanges due to falling profits, Fox News reported.

According to a Securities and Exchange Commission filing, Humana reported that it does not expect to earn enough money in premiums from individual plans to pay out its claims.

"We expect Humana will exit Health Insurance Exchange marketplaces in 2017 in light of this data, and focus on its Medicare Advantage book of business," said Ana Gupte, a Leerink Partners analyst.

The filing shows that Humana expects membership to drop this year from 200,000 to 300,000, which reflects some plans sold under Obamacare.

UnitedHealth has also had problems making profits under Obamacare. UnitedHealth had a loss of $425 million last year and warned it may exit the Obamacare exchanges altogether.

"Insurers like UnitedHealth and Humana have had a hard time turning a profit since the government-run marketplaces for plans opened in late 2013," states the article. "Part of the reason is because customers flocking to big insurers are using more medical care—something that is cutting into company profits."

Published under: Obamacare Exchanges