UnitedHealth Group Inc., the country’s largest health insurer, announced its plan to halt its sale of individual medical insurance plans in Missouri next year, including those plans offered through the health insurance exchange under the Affordable Care Act (ACA).
The insurer has yet to confirm whether it would take similar action in Illinois.
Approximately 795,000 consumers were covered by UnitedHealth through the health exchanges by the end of March, a report on the St. Louis Post-Dispatch’s website revealed.
UnitedHealth CEO Stephen Hemsley made the announcement after telling investors that the company would only offer exchange health plans in a select number of states. The insurer had just expanded its operations across 34 states this year.
Information on the specific states to retain access to UnitedHealth’s exchange health plans was not provided.
The company cited losses as the reason for its exit from the individual exchange business.
UnitedHealth sent a letter on April 15, informing the director of the Missouri’s Department of Insurance, Financial Institutions and Professional Registration of its decision to withdraw from the exchange.
“I am providing you with this formal notice of our intention to effectuate an individual market exit effective 1/1/2017 … as well as our decision not to participate on the Individual Exchange for 2017,” a part of the letter said.
Those currently enrolled in UnitedHealth’s individual insurance plans in Missouri will be notified of the insurer’s exit at least 180 days before January 1, the letter noted.
The letter also stated that the insurer’s exit will not affect its other products being sold in the state, such as mall and large group insurance plans.
According to a survey conducted by Kaiser Family Foundation for Health, 83% of Missouri counties would still have the opportunity to choose between at least two insurers; the rest will be forced to choose from the sole insurer operating in their region.
