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

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

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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.”

Ali Meyer

Ali Meyer   Email Ali | Full Bio | RSS
Ali Meyer is a staff writer with the Washington Free Beacon covering economic issues that expose government waste, fraud, and abuse. Prior to the Free Beacon, she was a multimedia reporter with CNSNews.com where her work appeared on outlets such as Drudge Report and Fox News. She also interned with the Heritage Foundation and Pacific Research Institute. Her Twitter handle is @DJAliMeyer, and her email address is meyer@freebeacon.com.

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