For the largest U.S. health insurance company to be dropping some of its coverage is seen as a sign that even some of the larger carriers are struggling to turn profits in the new markets created by Obamacare.
Customers who have coverage with UnitedHealth in those two states will have to find a new provider in 2017, but will be insured under their current policies for the remainder of this year. In addition to UnitedHealth, carriers including Aetna, Blue Cross and Blue Shield have incurred losses from ACA policies in certain states.
Analysts say that exiting unprofitable markets could boost profits and earnings figures for UnitedHealth. The company will also be dropping nearly 6,000 members enrolled in Medicaid policies in Arkansas that are linked to the ACA. Obamacare plans rely on private insurers to offer policies that customers can purchase in government-run markets.
Although UnitedHealth is the largest U.S. health insurer, with some 42 million medical customers, it insures a much smaller number (roughly 650,000) who are enrolled in individual-exchange compliant policies. The carrier declined to indicate whether it plans to exit ACA markets in additional states as well.