Humana is set to exit all of its Affordable Care Act-compliant off-exchange individual markets, as well as discontinue some on-exchange individual products, according to its earnings report.
The move will reduce the Kentucky-based payer’s presence for such offerings from 1,351 counties across 19 states in 2016 to 156 counties across 11 states in 2017. The change will bring Humana’s expected premiums from ACA offerings down to a range of $750 million to $1 billion next year from the projected $3.4 billion this year.
This is the third year in a row that insurers are struggling to make a profit in the individual market. United also reports 2016 losses tied to the Affordable Care Act and also will pull out of all but a few individual exchange markets in 2017.
However, Humana says while the individual marketplace “remains challenging,” it is experiencing “better-than-anticipated” performance so far this year.
That performance success, it notes, is due to exceeded expectations for its individual Medicare Advantage business, with results of about $185 million, and healthcare services business, with projected earnings of $62 million. Due to that success, the company updated its guidance for fiscal year 2016 adjusted earnings per share from $8.85 to $9.25.
- here's the report