Cigna on Friday became the latest major insurer to have profitability problems in its Obamacare business.
The insurer said it expected reductions in customers in its individual business, a majority of which is Obamacare’s exchanges. The insurer didn’t report specific profit or loss data for its Obamacare business, similar to how other insurers have reported results.
So far, Cigna has not said it is withdrawing from any of Obamacare’s markets. The insurer is in the midst of being acquired by Anthem, which has remained committed to Obamacare.
Cigna did not divulge how many customers it expected to lose, although it also noted that it would lose Medicare Part D customers as well. The company’s overall first quarter profits were better than expected, as it saw a 6 percent increase over the first quarter of 2015.
That was due to the stronger revenue from Medicare Advantage, a program that allows seniors to buy private insurance.
Insurers have largely not generated any profits from Obamacare markets yet, and some are giving up.
The most significant is UnitedHealth, which said last month that it would exit a majority of its markets next year after losing $425 million last year from its individual market business.
Humana announced on Wednesday that it might have to raise premiums or exit some markets for 2017.
Insurers Anthem and Aetna said that they remain committed to Obamacare, but want some help from the administration to offset any losses.
