Molina Healthcare, an insurer once heralded as an Obamacare success story, said Wednesday that it planned to hike premiums by 55 percent and leave two states altogether, as its huge bet on the government exchanges ended up leading to massive losses.
The company lost $230 million overall during the second quarter and announced that it will not be selling plans in Utah and Wisconsin for 2018. Other states where it sells plans would be “under review,” Molina said in a news release, noting that performance in Florida, Utah, Washington, and Wisconsin was “most disappointing.”
For the states will it will continue selling coverage, Molina plans to request an increase in premium rates of 55 percent for next year. The pricetag assumes the payment of cost-sharing reduction subsidies from the Trump administration will be cut off, but if the funds are allocated Molina still plans to request an increase in premiums of 30 percent.
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