“We expect Humana will exit Health insurance exchange marketplaces in 2017 in light of this data and focus on its Medicare Advantage book of business,”
Ana Gupte, an analyst with Leerink Partners, said in a note to clients Friday. Medicare Advantage is the private-sector version of the U.S. program for the elderly.
Humana, which is being acquired by Aetna Inc. (NYSE:AET), said in a regulatory filing that it’s still working to determine the size of the shortfall.
The insurer said it also expects its individual commercial membership to decline by about 200,000 to 300,000 people by Dec. 31, 2016.
The enrollment figure includes plans sold under Obamacare along with older policies.
The health insurer said that it probably won’t collect enough money to cover costs for some customers who bought individual plans, and will set aside what’s known as a premium deficiency reserve.
The shortfall is for 2016 plans that comply with new rules under PPACA, Louisville, Ky.-based Humana said Friday.