UnitedHealth Group Inc. was very open in its claims that it was impossible to sustain the economics of participating in healthcare exchanges under the Affordable Care Act (ACA, or “Obamacare”)—and thus the company would stop participating. It made good on that vow, and has now reported profit growth in the second quarter and raised its projections for the year, fueled by its Optum health-services arm. The largest insurer in the U.S. UnitedHealth has almost completely exited the ACA marketplaces. So far this year, the company’s net margin has risen to 4.6% (vs 3.8% at the same point last year). Optum overall saw earnings from operations grow 21%, to $1.5 billion.
UnitedHealth Sees Growth After Exiting ACA Markets