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UnitedHealth plans for costly Obamacare tax in 2018

Reuters 

By Caroline Humer and Ankur Banerjee

- Group Inc reported stronger-than-expected quarterly on Tuesday and said it was coping with uncertainty in U.S. healthcare laws by pricing its 2018 plans to include a costly Obamacare

President Donald Trump and other Republicans have vowed to repeal Obamacare, formally known as the Affordable Care Act, but have been unable to agree on a law to do that. That means the 3 percent collected on all health plans, currently on a hiatus, is due to take effect again next year.

As a result, U.S. health insurers are uncertain about how to price their plans and what benefits to include in 2018. Those selling Obamacare individual plans are particularly affected by these and other regulatory questions, but UnitedHealth's comments show that the lack of certainty has broad reach for the industry.

UnitedHealth, the biggest U.S. health insurer, pulled out of the individual market created under Obamacare this year.

The health affects pricing and benefits for all healthcare plans, including small business and government policies, which must submit to state and federal regulators in the next few months.

"Our plans continue to assume the will return in 2018, which will raise premiums and/or reduce benefits for commercial businesses, states and our nation's senior population," Chief Executive Officer Stephen Hemsley said during a conference call with investors to discuss earnings.

The company said first-quarter benefited from strength across its businesses, and it raised its profit and revenue forecasts for the year.

The company's shares were up less than 1 percent at $168.27.

"This is a great quarter, and there is a lot of upside this year," but uncertainty about U.S. policy could create obstacles next year, Leerink analyst Ana Gupte said.

Trump has pledged to overhaul taxes, but details are unclear.

said net earnings rose to $2.17 billion, or $2.23 per share, from $1.61 billion, or $1.67 per share, a year earlier.

Excluding special items, the company earned $2.37 per share, beating the analysts' average estimate of $2.17, according to Thomson I/B/E/S.

Revenue rose 9.4 percent to $48.73 billion.

The company had 2.5 million more people across its plans, offset by a loss of 900,000 who were in individual Obamacare plans. That market withdrawal, and the 2017 health hiatus, reduced consolidated revenue by about $1.6 billion for the quarter, said.

(Editing by Lisa Von Ahn)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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UnitedHealth plans for costly Obamacare tax in 2018

REUTERS - UnitedHealth Group Inc reported stronger-than-expected quarterly results on Tuesday and said it was coping with uncertainty in U.S. healthcare laws by pricing its 2018 insurance plans to include a costly Obamacare tax.

By Caroline Humer and Ankur Banerjee

- Group Inc reported stronger-than-expected quarterly on Tuesday and said it was coping with uncertainty in U.S. healthcare laws by pricing its 2018 plans to include a costly Obamacare

President Donald Trump and other Republicans have vowed to repeal Obamacare, formally known as the Affordable Care Act, but have been unable to agree on a law to do that. That means the 3 percent collected on all health plans, currently on a hiatus, is due to take effect again next year.

As a result, U.S. health insurers are uncertain about how to price their plans and what benefits to include in 2018. Those selling Obamacare individual plans are particularly affected by these and other regulatory questions, but UnitedHealth's comments show that the lack of certainty has broad reach for the industry.

UnitedHealth, the biggest U.S. health insurer, pulled out of the individual market created under Obamacare this year.

The health affects pricing and benefits for all healthcare plans, including small business and government policies, which must submit to state and federal regulators in the next few months.

"Our plans continue to assume the will return in 2018, which will raise premiums and/or reduce benefits for commercial businesses, states and our nation's senior population," Chief Executive Officer Stephen Hemsley said during a conference call with investors to discuss earnings.

The company said first-quarter benefited from strength across its businesses, and it raised its profit and revenue forecasts for the year.

The company's shares were up less than 1 percent at $168.27.

"This is a great quarter, and there is a lot of upside this year," but uncertainty about U.S. policy could create obstacles next year, Leerink analyst Ana Gupte said.

Trump has pledged to overhaul taxes, but details are unclear.

said net earnings rose to $2.17 billion, or $2.23 per share, from $1.61 billion, or $1.67 per share, a year earlier.

Excluding special items, the company earned $2.37 per share, beating the analysts' average estimate of $2.17, according to Thomson I/B/E/S.

Revenue rose 9.4 percent to $48.73 billion.

The company had 2.5 million more people across its plans, offset by a loss of 900,000 who were in individual Obamacare plans. That market withdrawal, and the 2017 health hiatus, reduced consolidated revenue by about $1.6 billion for the quarter, said.

(Editing by Lisa Von Ahn)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

UnitedHealth plans for costly Obamacare tax in 2018

By Caroline Humer and Ankur Banerjee

- Group Inc reported stronger-than-expected quarterly on Tuesday and said it was coping with uncertainty in U.S. healthcare laws by pricing its 2018 plans to include a costly Obamacare

President Donald Trump and other Republicans have vowed to repeal Obamacare, formally known as the Affordable Care Act, but have been unable to agree on a law to do that. That means the 3 percent collected on all health plans, currently on a hiatus, is due to take effect again next year.

As a result, U.S. health insurers are uncertain about how to price their plans and what benefits to include in 2018. Those selling Obamacare individual plans are particularly affected by these and other regulatory questions, but UnitedHealth's comments show that the lack of certainty has broad reach for the industry.

UnitedHealth, the biggest U.S. health insurer, pulled out of the individual market created under Obamacare this year.

The health affects pricing and benefits for all healthcare plans, including small business and government policies, which must submit to state and federal regulators in the next few months.

"Our plans continue to assume the will return in 2018, which will raise premiums and/or reduce benefits for commercial businesses, states and our nation's senior population," Chief Executive Officer Stephen Hemsley said during a conference call with investors to discuss earnings.

The company said first-quarter benefited from strength across its businesses, and it raised its profit and revenue forecasts for the year.

The company's shares were up less than 1 percent at $168.27.

"This is a great quarter, and there is a lot of upside this year," but uncertainty about U.S. policy could create obstacles next year, Leerink analyst Ana Gupte said.

Trump has pledged to overhaul taxes, but details are unclear.

said net earnings rose to $2.17 billion, or $2.23 per share, from $1.61 billion, or $1.67 per share, a year earlier.

Excluding special items, the company earned $2.37 per share, beating the analysts' average estimate of $2.17, according to Thomson I/B/E/S.

Revenue rose 9.4 percent to $48.73 billion.

The company had 2.5 million more people across its plans, offset by a loss of 900,000 who were in individual Obamacare plans. That market withdrawal, and the 2017 health hiatus, reduced consolidated revenue by about $1.6 billion for the quarter, said.

(Editing by Lisa Von Ahn)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22