UnitedHealth to leave California’s ACA marketplace

UnitedHealth will depart from California’s Affordable Care Act exchange at the end of 2016, according to California Healthline.

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In April, UnitedHealth CEO Stephen Hemsley announced that the insurer will only remain in a “handful” of states in 2017. The insurance giant has already said it will drop ACA coverage in New Jersey, Arkansas, Georgia, Michigan, Connecticut, Iowa, Maryland and Indiana.

Despite having just started offering coverage on California’s exchange this year, UnitedHealth is dropping the GoldenState, where it had 1,200 enrollees, many of whom live in rural northern counties.

“United is pulling out of California’s individual market including Covered California in 2017,” said Amy Palmer, a spokeswoman for Covered California, California’s health insurance exchange.

Interestingly, Covered California Executive Director Peter Lee expressed disdain for UnitedHealth in February. UnitedHealth is “driving me bonkers,” Mr. Lee said at the time, claiming the insurer has “fed this political frenzy that Obamacare doesn’t work. It’s total spin and unanchored in reality.”

More articles on payer issues:
Texas Health Resources, Aetna to launch health plan
State to seize control of Ohio insurance co-op
Health insurers in the news: May 19-26

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