United Health Care’s Exit Signals Obamacare Death Spiral

That didn’t take long. No surprise: Obamacare is collapsing.


From the WaPo:

UnitedHealth Group, the nation’s largest health insurer, said that in 2017 it will exit most of the 34 states where it offers plans on the Affordable Care Act insurance exchanges in an earnings call.

“We will be down to a handful of states that we will be actively participating in the exchanges,” said Stephen J. Hemsley, chief executive officer of UnitedHealth Group, noting that the small market size and higher risk profile of doing business in the exchanges led the insurer to make the decision.

UnitedHealth reportedly plans to withdraw from health insurance marketplaces in ArkansasMichigan and parts of Georgia. The moves have been anticipated since late last year when UnitedHealth executives said the insurer had suffered financial losses and threatened it might leave the health exchanges altogether in 2017. In January, the insurer reported that it expected a loss of $1 billion in the exchanges over 2015 and 2016.

How can this be? Actually, the real question how could it not be? It was inevitable. As we have said repeatedly here, and on The Teri O’Brien Show, when you require health insurance companies to sell coverage to people at a set price, regardless of their current medical condition, you are creating an unsustainable situation. It’s a no-brainer, which is par for the course for clueless leftists like B. Hussein Obama and his merry band of Marxists.

The death spiral results when the young and healthy, who are being gouged for health care coverage, hot foot it to the exits, while the old and very sick rush to buy in.

Let’s hope all the insurance companies bail out of this wrong-headed, income redistribution scheme so we can get rid of this train wreck foisted on us by Obama and a rogue Democrat Congress.


  1. Obamacare has been a train wreck that has been collapsing since the day it was launched. I also liken it to a plane crashing on take-off. It may have gotten airborne for a few seconds just prior to its fiery crash but it never really managed to start flying.

  2. Right because without medical underwriting (that is, not insuring pre-existing conditions) it is NOT insurance. It is income redistribution. There were high risk pools in several states prior to Obamacare, and that system could be made to work, much better than the ACA. The ACA has nothing to do with helping anyone. It’s more of the same Obama pay-back philosophy; that is, 85% of people got their health insurance from their employers, which meant that many in the traditional middle and upper middle class had better insurance than the bums, freeloaders, sperm donors and their baby mamas. That would never do! That’s unfair, even if the former group included people who work 40, 50,60 or more hours a week. So, time to make sure that if the latter group has crappy health care, everyone does, and the former group pays for the whole scheme. Fairness, see?

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