UnitedHealth Spurns Obama Exchanges as Rules Stall Profit

[TexasTowelie]

nitedHealth Group Inc. (UNH) will offer coverage in just a dozen of the U.S. health-care law’s new insurance exchanges, in the latest sign big insurers see little gain from quickly plunging into the new markets.

The country’s largest health insurer is taking a conservative approach to the online markets set to open in states Oct. 1, Chief Executive Officer Stephen Hemsley told investors yesterday at the Sanford C. Bernstein & Co. conference in New York. The company’s plans reflect its concern that the first wave of newly insured customers under the law may be the costliest, Hemsley said.

UnitedHealth will “watch and see” how the exchanges evolve and expects the first enrollees will have “a pent-up appetite” for medical care, Hemsley said. “We are approaching them with some degree of caution because of that.”

The approach offers another hurdle for state and U.S. officials trying to meet the technical challenges involved in the exchanges, where millions of uninsured may seek coverage under President Barack Obama’s Affordable Care Act. While local insurers and Blue Cross plans will fill the gap in most states, the for-profit companies would have provided added choice, said Sarah James, a Wedbush Securities analyst in Los Angeles.

More at http://www.bloomberg.com/news/2013-05-31/unitedhealth-spurns-obama-exchanges-as-rules-stall-profit.html .

[bhikkhu]

1. I wouldn't want to own any of their stock

...sounds like the train's leaving the station without them.

In Oregon we're lucky - way ahead of the program, exchanges are ready to go. I'll be signing up October 1st.

[OKNancy]

2. They are going to miss out then

First, it's sickening that they feel they can't insure the neediest people, but on the other hand, I think a lot of young people will be signing up and also many healthy people as well. They are going to miss out on a lot of new customers and they are getting bad press as well.

I had considered this company for my Medicare gap coverage when I sign up at the end of the year.... they are off the list. For this and for other things I've read about them.

[TexasTowelie]

4. Wise decision. nt

[Laelth]

3. k&r for exposure. n/t

-Laelth

[hobbit709]

5. They want to keep making their 20% profit margin

so their CEO can keep getting his $100 mill.