On Tuesday, the CEO of UnitedHealthcare told investors that he regretted the company’s decision to enter the Obamacare marketplace. The move has resulted in millions of dollars in losses, according to CEO Stephen Hemsley.
“It was for us a bad decision,” stated Hemsley. “I take accountability for sitting out the exchange market in year one so we could in theory observe, learn and see how the market experience would develop. This was a prudent going-in position. In retrospect, we should have stayed out longer.”
Quite simply, as Hemsley and others have found, Obamacare is financially untenable. “Losses from the plans this year and next will total more than half a billion dollars, the company has said, and UnitedHealth will scale back efforts to market coverage to millions of people shopping for 2016 insurance on the Affordable Care Act’s new marketplaces,” reports Bloomberg Business.
And as Bloomberg notes, UnitedHealth "is not alone" in suffering financial losses in its Obamacare plans. "Other insurers, including competitors Anthem Inc. and Aetna Inc., have also either suffered losses in the markets or said they haven’t seen the margins they expected."
As the nation’s largest insurer, UnitedHealthcare sets the precedent for the healthcare marketplace, and as such its announcement that it may withdraw entirely from the president's "signature domestic achievement" is a devastating blow to the embattled program. According to The Hill, the insurer “announced last month that it would no longer advertise its ObamaCare plans over the next year and may pull out completely in 2016 — a move that sent shockwaves across the healthcare sector.”
The latest fallout from Obamacare portends further failure. In the end Republicans may not need to dismantle the law. Obamacare is collapsing under the weight of its own logistical disasters.