Minnetonka, Minn.-based UnitedHealth Group will shutter its subsidiary Harken Health due to losses accrued by the health plan's individual policies, Star Tribune reports.
Here are five things to know.
1. UnitedHealth established Harken Health as an independent subsidiary in 2016. Harken provides health insurance paired with unlimited primary care services at clinics in Atlanta and Chicago, Star Tribune reports.
2. UnitedHealth said Tuesday it will phase out Harken's membership and close its business in Georgia and Illinois, the only two states in which it operates.
3. Harken said it will not offer individual policies off the ACA exchanges for 2018 in a recent regulatory filing. The move follows Harken's decision to pull out of the 2017 ACA exchanges.
4. The payer will also cease employer-based health plans once current contracts terminate, the report states.
5. The subsidiary sustained a $63.7 million net loss in fiscal year 2016.