Excerpted from The Daily Caller:
The nation’s largest health insurance company has decided to stop covering individuals in the nation’s largest state.
UnitedHealth Group Inc. said that it will not participate in California’s individual health insurance market beginning Jan. 1, 2014, when Obamacare regulations will take effect, according to the Los Angeles Times.
Last month, insurance giant Aetna also announced that it will no longer cover individual Californians. Together, the companies’ decision to stop providing individual coverage will affect 58,000 existing customers in California.
The move is a result of new Affordable Care Act requirements for insurance companies to accept all applicants for individual coverage, including those with preexisting conditions. The law also requires insurers provide a bevy of new benefits for their customers.
Problems with implementing the health care law have plagued the Obama administration, despite the president’s oft-repeated assurance that “if you like your health care plan, you’ll be able to keep your health care plan.”
UnitedHealth’s announcement last month that it will participate in only twelve state exchanges beginning in January has sparked concerns about whether the insurance markets will be competitive enough for the health care law to work. Both companies will continue to offer health insurance in California through employers, but this may not be a relief to everyone.