Humana has announced it is in the process of proposing changes to some of its plans, which may include product exits from the Obamacare exchanges in 2017, according to a statement from the company released today.
"Humana is in the process of finalizing plans for its ACA-compliant individual commercial medical market offerings in 2017," the company stated. "Humana anticipates proposing a number of changes to retain a viable product for individual consumers, where feasible, and address persistent risk selection challenges."
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"Such changes may include certain statewide market and product exits both on and off exchange, service area reductions and pricing commensurate with anticipated levels of risk by state," they said.
The company also said that individual commercial enrollment dropped by 233,200.
Additionally, the report found consolidated revenues, which includes investment income, declined by $33 million in the first quarter of 2016. Total premiums and services revenues declined by $38 million during the same period. The company anticipates that the business will see a loss for the full year of 2016.
Brian Kane, senior vice president and chief financial officer of Humana, said they would "remain cautious" while their healthcare exchange business continues to develop.
Humana’s announcement comes after UnitedHealth has stated that they would cut participation in Obamacare exchanges to only a handful of states.
According to UnitedHealth’s CEO, the company expects losses to total more than $1 billion from this year and last, and the group cannot continue to broadly serve the market created by the Affordable Care Act’s coverage expansion due to risk that comes with its customers.
The Department of Health and Human Services did not respond to requests for comment by press time.