United HealthCare To Exit California’s Health Exchange

UnitedHealth Group Inc. is leaving California’s insurance exchange (Covered California) at the end of the year (2016).

The nation’s largest health insurer announced in April it was dropping out of all but a handful of 34 health insurance marketplaces it participated in. But the company had not discussed its plans in California.

UnitedHealth’s pullout also affects the individual market outside the Covered California exchange. Existing policies will remain in effect until the end of December.

It’s expected that UnitedHealth will continue offering coverage to employers in California and to government workers and their families through the California Public Employees’ Retirement System.

UnitedHealth just joined the California exchange this year, and it only has about 1,200 enrollees so the immediate impact on consumers is minimal.