Following in the footsteps of several major insurance companies in the past two years, Humana announced today that it will not be participating in the Obamacare exchanges in 2018, citing rising costs and risk pools.
“The company said in a press release it has tried for the past several years to keep selling policies where it could offer “a viable product.” It said it increased premiums, exited markets and tightened provider networks in hopes of stabilizing its individual market business.
But an initial analysis of its 2017 consumer base found that it remained riskier than Humana could tolerate. So the company is exiting all 11 states where it sells individual policies, both on the Obamacare exchange and outside of it.
“We are again seeing signs of an unbalanced risk pool based on the results of the 2017 open enrollment period, therefore we’ve decided that we can’t continue to offer this coverage in 2018,” said Bruce Broussard, Humana’s chief executive, in a conference call with investors.”
This decision was done in conjunction with Humana’s possible merger with Aetna, which was canceled today as well. This in turn lead to the announcement of another merger breakup; in response to the Humana news, Cigna and Anthem decided not to pursue their changes as well.
Obamacare continues to spiral out of control. It’s telling that we have not heard any initial numbers regarding the amount of enrollees this year. Obamacare has consistently missed its target enrollment figures — some by nearly 50%. If we are going to repeal it, we need to replace it with something better.