UnitedHealth Group Inc., the biggest U.S. health insurer, said it will drop out of all but a “handful” of state exchanges where it sells individual Obamacare plans, acting on concerns it raised last year that the government program that has brought coverage to millions isn’t profitable enough.
Chief Executive Officer Stephen Hemsley said Tuesday that the company next year “will remain in only a handful of states.” The exchange market is proving to be smaller and riskier than UnitedHealth had expected, meaning “we cannot broadly serve it on an effective and sustained basis.” The company expects to lose about $650 million on the plans this year.
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