Another major insurer says it will leave some Obamacare exchanges after a drop in enrollment and lower profits.
Humana anticipates that it will exit certain statewide individual markets and products “both on and off [Obamacare] exchange,” the insurer said in its financial results released Wednesday. It did not elaborate on how many markets would be affected.
Humana also hinted at potential price hikes by noting that it will have to make prices “commensurate with anticipated levels of risk by state.” The news comes as other insurers have divulged a mixed bag in Obamacare’s exchanges.
Humana reported that first quarter enrollment in the individual market, a majority of which is Obamacare, was 875,000 people as of March 31. That was down 21 percent (233,200) from 2015’s total.
The change was due to losing 150,000 people who got their plans terminated by the federal government because they didn’t have the proper paperwork, and others who didn’t pay their premiums.
Humana also said it anticipates “a loss associated with this business for the full year 2016.” Humana does remain committed to the Obamacare exchanges, and is hoping the market stabilizes.
Another major insurer that is fleeing Obamacare is UnitedHealth, the country’s largest insurer, who said recently it will exit a majority of its Obamacare markets.
Other insurers such as Anthem and Aetna remain have said they are committed to the exchanges.
