#5: UnitedHealthcare Threatens Obamacare
The largest health insurance company in the country warned regulators and stockholders that they may withdraw from the Health Insurance Marketplaces in 2017. This is a move that could force more than 500,000 people to search for a new plan.
Hemsley, UnitedHealthcare’s chief executive, cited lower than expected enrollments and higher than expected healthcare usage as the main culprits. Despite racking up $4.6 billion in profits through the first 9 months of 2015, losses from Obamacare will worsen UHC 2016 outlook. Hemsley was quoted as saying, “In retrospect, we should have stayed out longer. It will take more than a season or two for this market to develop.” Some speculate that this move is largely political and serves as a warning to regulators like Senator Rubio to stop removing funding from these programs. The Health Insurance Marketplaces require private insurers to participate in order to make them work. With UnitedHealthcare threatening leave, it remains to be seen if the key part of Obama’s Affordable Care Act can stay afloat.