Humana announced Tuesday that it would no longer participate in the Obamacare marketplaces, making it the first major insurer to withdraw from the exchanges since Trump’s election.
In a statement to investors, Humana didn’t talk about the current uncertainty surrounding the health law’s future. Instead, it cited problems from last year, suggesting that the people who signed up were sicker than the insurer expected. This was Humana’s statement:
Based on its initial analysis of data associated with the company’s healthcare exchange membership following the 2017 open enrollment period, Humana is seeing further signs of an unbalanced risk pool. Therefore, the company has decided that it cannot continue to offer this coverage for 2018. Through the remainder of 2017, Humana remains committed to serving its current members across 11 states where it offers Individual Commercial products. And, as it has done in the past, Humana will work closely with its state partners as it navigates this process.
“Unbalanced risk pool” is insurance jargon for too many sick people and not enough healthy enrollees to balance out their costs.