Cigna is losing money on its Affordable Care Act marketplace plans, but the Bloomfield, Conn.-based insurer remains committed and is not considering pulling out of the exchanges, unlike UnitedHealthcare.
In November, Minnetonka, Minn.-based UnitedHealth Group said it was considering pulling out of the ACA exchanges in 2017, and UnitedHealth CEO Stephen Hemsley defended that position last week. UnitedHealth is expecting more than a half a billion dollars in losses on individual policies sold on the ACA exchanges in 2015 and 2016.
Although Cigna is so far losing money on its ACA marketplace business, Cigna CEO David Cordani told Kaiser Health News the insurer does not intend to quit selling plans on the exchanges.
"We said from day one we didn't expect to make money on it. We didn't make money on it in 2014 and we aren't making money on it in 2015," Mr. Cordani said.
The marketplace may be rough for the first few years, but Mr. Cordani expects it to improve. He believes it will take through 2016 for the market to "shake itself out," according to KHN.
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