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UnitedHealth’s ACA exchange losses reach $720 million
Modern Healthcare

UnitedHealth Group’s first foray with the health insurance exchanges turned out to be worse than expected. UnitedHealth lost $720 million on its individual-market health plans in 2015, the company said Tuesday, nearly $300 million above estimates made a few months ago.

In 2015 and 2016, UnitedHealth expects to lose approximately $1 billion on exchange plans.

The massive deficit on Affordable Care Act plans consequently ate away at UnitedHealth’s fourth-quarter profit, which dropped 19% to $1.22 billion. The company also booked $95 million in expected losses from its new managed Medicaid contract in Iowa. However, UnitedHealth’s full-year profit still increased 3.5% year over year, totaling $5.81 billion.