Harken Health Insurance, a startup that sold Obamacare plans in Chicago and Georgia, has announced they are exiting the Obamacare marketplace, Business Insider reports.
The startup, part of UnitedHealthcare, was launched in early 2016 to make money on the Obamacare exchanges.
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"Harken Health remains committed to our innovative model of insurance paired with access to relationship-based care and we look forward to continuing to offer plans to individuals and employers who purchase coverage outside of the exchange," the company said in a statement to the news outlet.
While the startup sold plans in Chicago and Georgia and planned to expand to South Florida, the company announced that it will no longer sell Obamacare plans in any of these locations but it will still offer plans in various states outside of the exchanges.
"The move by Harken is the second Obamacare-focused startup that has rolled back ACA plans," the article states. "Oscar, the online health-insurance startup that works through the exchanges, announced in August that it would pull out of two exchanges—in Dallas and New Jersey."
"Large firms such as Aetna, UnitedHealth, and Humana have also pulled large portions of their Obamacare offerings earlier in 2016," the article states. "All of the firms have said that the pool of customers they have covered through the exchanges have been older and sicker (and thus more expensive) than they expected."