Despite Losses on ACA Plans, UnitedHealth Reports Higher 1Q Profit

UnitedHealth Group Inc. will drop out of government-organized health insurance markets in at least 16 states as the U.S. industry leader tries to stem losses from participating in Obamacare, the healthcare overhaul that has brought coverage to millions of people.(Bloomberg)

“We will be down to a handful of states that we will be actively participating in the exchanges,” Stephen J. Hemsley, chief executive officer of UnitedHealth Group said in an earnings call, noting that the small market size and greater expense of patients insured through the marketplaces led the insurer to make the decision. (The Washington Post)

UnitedHealth has a pretty good earnings track record with the company delivering positive earnings surprises in each of the last four quarters with an average surprise of 3.1%. (Zacks)

(Read all about UnitedHealth’s exit from Obamacare)