Daily Archives: April 21, 2016

United Health Loses $1 Billion on ObamaCare Exchanges

UnitedHealthCare was a key player in bringing ObamaCare to life. It was clear from the get go that the program was unsustainable. But that didn’t matter. A decision of a government contractor to support such a program is not usually about the merits of the program.  

Here’s how such reasoning often goes. There’s this big new program the government is going to create and fund. It’s going to happen and someone has to do the work. And that somebody might as well be us because we can make money so let’s get on board early to push it through. (It’s usually not stated so directly but couched in business decision language.)

When I was a boy I would walk down from my house to watch the earth moving equipment construct the original I-495 Beltway around Washington DC. Over the years I learned about government contractors who did the work for a government agency charging higher than usual fees. The term “beltway bandit” was (and still is today) used to refer to such firms.  But now there are government contractor’s just about everywhere.  So does that mean such firms are just “bandits?” I wonder…

“UnitedHealth, America’s largest health insurance provider, says it will exit from most ObamaCare exchanges next year, citing more than $1 billion in losses.” click here