UnitedHealth is exiting California’s Obamacare exchange as part of its exodus from the law’s individual marketplaces.
The state’s Obamacare exchange, Covered California, told Kaiser Health News on Tuesday that the largest U.S. insurer is leaving the entire individual market in the state. Obamacare comprises a majority of the individual market, which is for people who don’t get insurance through their job.
UnitedHealth has been in the exchange for only about a year and has about 1,200 enrollees. Covered California had more than 425,000 people enroll overall in the latest open enrollment period.
Earlier this year, UnitedHealth announced it was leaving most of the 34 states where it offers Obamacare plans, citing financial problems that include a lack of profitability in the exchanges.
Other insurers have followed suit, including Humana, which has said it may exit some insurance markets or raise premiums to ensure sustainability.
Some major insurers, most notably Anthem Blue Cross/Blue Shield, announced they remain committed to the exchanges but need help from the Obama administration to remain financially viable.
