UnitedHealth, the largest health insurer in the country, revealed Tuesday that it will leave the Obamacare marketplace in all but a handful of states due to continuing losses:
UnitedHealth’s CEO said in an investor call Tuesday morning that the Obamacare market has continued to show high risk.
“Next year we will only remain in a handful of states,” CEO Stephen Hemsley said. UnitedHealth lost $425 million last year due to Obamacare.
The insurer, which had plans in 34 states this year according to the Kaiser Family Foundation, had already said it would pull out of Michigan, Georgia and Arkansas next year.
United is not the largest insurer within the Obamacare marketplace itself. However, an analysis released Monday found that if United exits the marketplace entirely it would cause some premiums to rise by up to $100 and reduce competition in some markets.
Sen. Ben Sasse (R-Neb.) seized on the news to highlight Obamacare’s failure:
“This isn’t about spreadsheets and quarterly reports— it’s about the President’s broken promise that families would have more choices under ObamaCare,” Sen. Ben Sasse (R-Neb.) said in a statement Tuesday.
“This year, in 36 percent of the nation’s counties, families could pick between only one or two insurers on the exchange and, given today’s news, next year looks like it could be even worse.”
It remains unclear in which states UnitedHealth will continue to offer Obamacare.