UnitedHealth Group Remains Afloat Despite ACA Loses


The company is projected to lose $850 million for the year due to Affordable Care Act plans.

Although UnitedHealth Group Inc’s earnings are strong in its pharmacy-services business, the insurer is projected to lose $200 million in Affordable Care Act (ACA) losses in the second quarter of the year.

Overall, the insurer is expected to lose $850 million for the year, according to The Wall Street Journal. Larger increases in enrollments, sicker than expected customers, and customers with more chronic conditions all contributed to their losses.

The insurer has withdrawn from all but a handful of ACA marketplaces for the upcoming year due to its immense losses. However, company officials have said that despite their losses, costs have picked up in certain areas, such as specialty pharmacy and emergency department use.

The company’s health-service arm Optum increased revenue approximately 51%, and accounts for 44% of their revenue, according to the article. Their revenue also increased approximately 28% to $46.49 billion.

Although UnitedHealth took a severe loss by selling ACA plans, they are clearly doing well in other aspects of the business.

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