Molina Healthcare Inc., a company that chose to tough it out with the exchanges set up under Obamacare, may now have to drop out after losing astronomical amounts of money last quarter.
The company’s CEO, J. Mario Molina, said he is willing to wait to see what the Trump administration will come up with as a replacement for the program.
Molina said in a statement: “While we experienced strong enrollment growth across our business and have made progress on our cost cutting efforts, today’s results highlight the continuing challenges we face in the Affordable Care Act markets.”
Molina, in a conference call with investors, said, “There are simply too many unknowns with the marketplace program to commit to our participation beyond 2017.”
According to Bloomberg: “Largely because of losses suffered in Obamacare, Molina posted an unexpected loss in the fourth quarter, of $1.54 a share excluding some items. Analysts anticipated a profit of 75 cents a share. The shares plunged in late trading, and were down 12 percent to $52.50 at 5:51 p.m. New York time, erasing their gains for the year to date.”
Aetna Inc.’s CEO Mark Bertolini said the markets are “in a death spiral,” and predicted more health insurers will quit in 2018, this following Humana Inc.’s recent decision to leave the market next year.
Aetna lost about $450 million on sales of ACA plans last year and the company now only operates in four states, down from 15, originally.
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