UnitedHealth to trim ACA exchanges to 'handful' of states

Disclosure: I'm no fan of Obama or Obamacare nor do I know much about stocks. I'm more into real estate investments.

Having said that,something smells fishy to me about this. They are claiming OBMACARE has negatively impacted their industry but stocks,earnings, and future forecast don't support that.

It appears to me that Despite the positive growth since Obamacare been in effect ,they are looking to ditch the most cost prohibitive customers on the tax payers and change a 45 degree positive incline to a full 90 degree positive incline?

UnitedHealth to trim ACA exchanges to 'handful' of states
He added that the company cannot continue to broadly serve the market created by the Affordable Care Act's

But insurers have struggled with higher than expected claims from that business.

Insurers say they have struggled

Other publicly traded insurers like Aetna have said that they have lost money on this business as well

The same article after claiming how dire things are for them than goes and says

UnitedHealth shares jumped 2.2 percent, or $2.79, to $130.60 in morning trading Tuesday. The company also raised its forecast for 2016 and announced first-quarter results that beat expectations.

Not to mention ever since OBAMACARE went to effect 2010 and actively implemented in 2013 there stocks have never been higher and they have enjoyed almost 45 degree incline?



Top 3 Insurance companies earnings after obamacare:

What this really has to do with, in my personal opinion/experience, is the 80/20 rule.

Now insurance companies who participate can only make 20% of their total premiums, in profits. Then they must refund the extra profits to their customers.


Humana made more then 20% and all of its policy holders got a check. Mine was a few hundred dollars...

I'm betting United wants more then 20% in profits....even tho they don't actually preform a medical service AT ALL!

They claim they're losing ....

UnitedHealth to trim ACA exchanges to 'handful' of states

UnitedHealth Group Inc. said it now expects to lose $650 million this year on its exchange business, up from its previous projection for $525 million. The insurer lost $475 million in 2015, a spokesman said.

UnitedHealth has already decided to pull out of Arkansas, Georgia and Michigan in 2017, and Hemsley told analysts during a Tuesday morning conference call that his company will not carry financial exposure from the exchanges into 2017.

"We continue to remain an advocate for more stable and sustainable approaches to serving this market," he said.

Failure

Either that or it's the pattern of usage.

People only picking up policies when they have a conditions that warrants it that will definitely go over the deductible. Remember, no one can be turned away for pre-existing, so ... oops! I rolled my car. Ring up the insurance. Oops! I just found out I have stage three cancer. Ring up the insurance.

It's too expensive to carry regularly, and you can make them eat the bill otherwise.

a reply to: ketsuko

Ring up the insurance.

Right, but if you look at their earnings , stocks, and future forecast it paints a different picture. They are doing better than ever?

It almost looks like to me that they are purposely making themselves to look in a dire situation. Perhaps to hopefully and despite being in great financial shape to get the gov't to use tax payers money to take on all the high risk clients for them. That way they just secure those that only pay into the system and the gov't does all the paying out.

Something doesn't sound right about the dire pitch they are trying to put out, which contradicts their financials.

I'm loading up with Vaseline because I think the tax payers are going to get a serious screw1ng in the near future with this?

a reply to: xuenchen

oopsie . I updated the op with the article. LOL

a reply to: JoshuaCox

Now insurance companies who participate can only make 20% of their total premiums, in profits. Then they must refund the extra profits to their customers.

Interesting and appears like good motivation if you are thinking you are going to be above the 20% margin.

You have any additional information on this?

originally posted by: interupt42
a reply to: JoshuaCox

Now insurance companies who participate can only make 20% of their total premiums, in profits. Then they must refund the extra profits to their customers.

Interesting and appears like good motivation if you are thinking you are going to be above the 20% margin.

You have any additional information on this?

Is this what your looking for Here?

Talks about some of the 80/20 rule, and rebates for the excess.

a reply to: Cygnis

Great thanks. I wasn't aware about that 80/20 rule.

originally posted by: JoshuaCox
What this really has to do with, in my personal opinion/experience, is the 80/20 rule.

Now insurance companies who participate can only make 20% of their total premiums, in profits. Then they must refund the extra profits to their customers.


Humana made more then 20% and all of its policy holders got a check. Mine was a few hundred dollars...

I'm betting United wants more then 20% in profits....even tho they don't actually preform a medical service AT ALL!

That's the dumbest rule I ever heard of. They could easily get by this rule by giving the top CEO's a raise.

If everyone HAD to PAY for their own healthcare it would be a hell of a lot cheaper because most people would tell them to get bent with todays prices.

While I don't know about other States, basically here in IL, only Blue Cross is a decent cost effective long-term option.
However, their plans don't allow you to go to any of the major teaching hospitals.

My guess is the people buying the higher price plans are the people with major illnesses who are willing to pay the high deductible for a year or two.

So I do believe they are losing money on the plans.

I do support providing basic health care - I just think the exchange is too expensive for most people. Add in the almost impossible task of estimating income every year and it's not a workable solution.

It's time medicare/medical for everyone - supported by a payroll tax. Allow people to opt out the program to buy better private insurance - like the UK.

United Healthcare has only participated in the ObamaCare Exchanges for 2015 and 2016. They sat out 2014. How can their departure be such a big deal. Here in Illinois, United Healthcare is so overpriced, nobody picked them anyway.

On a larger scale, only 6% of Americans buy their own health insurance. The rest are Employee Group, Government, Medicaid, etc.. Source: acasignups.net...

a reply to: Daughter2

So I do believe they are losing money on the plans.

But if you look at their stock value, earnings, and future forecast it paints a completely different issue. They are doing better than ever.

I think JoshuaCox might be on to something with the 80/20 rule

a reply to: carewemust

How can their departure be such a big deal

Its not that its a big deal, its their reason as to why they are jumping ship that makes no sense.

They make it sound like Obamacare is going to make them go bankrupt.

However, there stocks,earnings, and future forecast indicate eitherwise. Not only are they doing great they are doing better than ever.

Besides that , they also had their hands in the cookie jar when they drafted Obamacare, so something else is going here that will surely screw the tax payers or upcoming competition.

originally posted by: interupt42
a reply to: JoshuaCox

Now insurance companies who participate can only make 20% of their total premiums, in profits. Then they must refund the extra profits to their customers.

Interesting and appears like good motivation if you are thinking you are going to be above the 20% margin.

You have any additional information on this?

Just that it's called the 80/20 rule.


Humana had to have made MORE than its 20% mark.

originally posted by: xuenchen
They claim they're losing ....

UnitedHealth to trim ACA exchanges to 'handful' of states

UnitedHealth Group Inc. said it now expects to lose $650 million this year on its exchange business, up from its previous projection for $525 million. The insurer lost $475 million in 2015, a spokesman said.

UnitedHealth has already decided to pull out of Arkansas, Georgia and Michigan in 2017, and Hemsley told analysts during a Tuesday morning conference call that his company will not carry financial exposure from the exchanges into 2017.

"We continue to remain an advocate for more stable and sustainable approaches to serving this market," he said.

Failure

I'm not saying you are wrong, but there is a lot of other fudging that goes into profits.

Obama care only makes up a small portion of Uniteds total buisness. If other sectors are losing money, and United expects more than a 20% return on their investment. To help offset marketing or other expenses, elsewhere. You could see how it was a big contributing factor.


Humana made money, and control the largest share of the ACA.

originally posted by: jkm1864

originally posted by: JoshuaCox
What this really has to do with, in my personal opinion/experience, is the 80/20 rule.

Now insurance companies who participate can only make 20% of their total premiums, in profits. Then they must refund the extra profits to their customers.


Humana made more then 20% and all of its policy holders got a check. Mine was a few hundred dollars...

I'm betting United wants more then 20% in profits....even tho they don't actually preform a medical service AT ALL!

That's the dumbest rule I ever heard of. They could easily get by this rule by giving the top CEO's a raise.

The ACA is necessary, but inherently flawed. Insurance companies , with there profits and CEO's , should be removed completely. There was suppose to be a public option, but the republicans cut it out to, because they are in the insurabce company profits.

a reply to: interupt42


You're right, Interupt42. There is indeed something strange about United Healthcare stating that "their sky is falling", due to losing money on just 2% of their customer base.

Here in the Chicago region, (and in Atlanta) United Healthcare set up a subsidiary company known as HARKEN HEALTH. It went into operation on 1/1/2016. Harken has "reasonable" premiums (as ACA premiums go), the best PPO network of any company serving Illinois, and plan benefits that beat Blue Cross, Humana, and even UHC, it's parent company.

United Healthcare stated this week that Harken Health will continue to stay in the ObamaCare individual health market in 2017. With lower premiums, a great PPO network, and top-notch benefits in each of their plans, Harken must be losing a heck of a lot of money. That decision is very puzzling.
-cwm


p,s. Here's a list of the states where United Healthcare will, and will not, be exiting ObamaCare at the end of this year...
acasignups.net...

originally posted by: jkm1864
If everyone HAD to PAY for their own healthcare it would be a hell of a lot cheaper because most people would tell them to get bent with todays prices.

And then they would die.