Another major American healthcare provider is signaling that it is likely to pull out of the Obamacare markets in 2018 if its financial position continues to deteriorate.
Anthem Inc. is poised to join UnitedHealth Group Inc., Aetna Inc., and Humana Inc. in pulling out of its participation in the Affordable Care Act (ACA), often called Obamacare. These giant healthcare companies have suffered massive losses under the law.
“If we do not see clear evidence of an improving environment and a path towards sustainability in the marketplace, we will likely modify our strategy in 2018,” Anthem Chief Executive Officer Joseph Swedish said, according to Bloomberg. “Clearly, 2017 is a critical year as we continue to assess the long-term viability of our exchange footprint.”
If Anthem withdraws from Obamacare, it could affect the coverage of about 889,000 insured Americans in 14 states. But Swedish noted that the pool of enrollees has been too small to make the system sustainable.
“The financial performance in individual ACA compliant products has been disappointing as membership has been short of our original expectations,” Swedish added.
Anthem recently fell short of its third-quarter earnings estimates as the company’s costs for insured customers increased.
Obamacare has been on the verge of collapsing all year as the financial sustainability of the scheme has proven untenable.
Recently, the Obama administration had to admit that Americans will be forced to pay far more for their insurance costs, as premiums are set to soar yet again next year.
Follow Warner Todd Huston on Twitter @warnerthuston or email the author at igcolonel@hotmail.com.
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