The CEO of Molina Healthcare, a major Obamacare insurer, has been ousted partly because of major losses in the exchanges.
Dr. J. Mario Molina and his brother, Chief Financial Officer John C. Molina, were fired Tuesday. The reason was the insurer's "disappointing financial performance," according to a statement from Chairman Dale Wolf.
The ouster comes about a week after Molina threatened to leave all of Obamacare's exchanges if it didn't get cost-sharing reduction payments from the Trump administration. While Trump will make the payments in the short term, he has said he wants to see what happens with an Obamacare repeal bill before deciding to fund them next year.
Molina derived much of its business from Obamacare's exchanges on the individual market, which is for people who don't get insurance through work.
Mario Molina, whose father founded the company, last week threatened to fully leave the exchanges if the payments weren't made. He said that up to 700,000 people would lose insurance if the payments weren't made.
If the company follows through with the threat, up to 1 million people could lose coverage.
But the company's participation in Obamacare was already in doubt after the company's fourth-quarter profits tumbled.
Molina said in February that its fourth-quarter income fell to $137 million, down from $322 million a year earlier.
The company lost $110 million from Obamacare's exchanges. The company was hoping to generate as much as $60 million in profits from the exchanges.