Sign of the times? United Health Care has just dropped out of the ACA. Although this will not have a major effect, it is a symptom of the ACA limits...

boberic Loc: Quiet Corner, Connecticut. Ex long Islander

United Health Care has just dropped out of the ACA. Although this will not have a major effect, it is a symptom of the ACA limits

Bazbo Loc: Lisboa, Portugal

boberic wrote:

United Health Care has just dropped out of the ACA. Although this will not have a major effect, it is a symptom of the ACA limits

Its a crappy law, designed from the beginning not to work. Oddly, it is exactly what Paul Ryan wanted to do with Social Security.

Thank you Heritage Foundation.

PrairieSeasons Loc: Red River of the North

boberic wrote:

United Health Care has just dropped out of the ACA. Although this will not have a major effect, it is a symptom of the ACA limits

There are a couple of embedded "surprises" in the recent history of United Health Care and their participation in the ACA.

First, even though they are the biggest health insurer in the US, they were only 5-10% of the Obamacare individual participants. Second, and the real kicker, was that they were among the more expensive of the Obamacare plans.

Does that mean that they had better knowledge of what Obamacare would really cost, or that they just wanted to price themselves out of the market? My guess is that it was the former and there are still more upside price surprises coming.

Checkmate Loc: Southern California

Bazbo wrote:

Its a crappy law, designed from the beginning not to work. Oddly, it is exactly what Paul Ryan wanted to do with Social Security.

Thank you Heritage Foundation.

Proof Spazbo?

kd7eir Loc: Tucson, AZ

If you think this has anything to do with losing money you are wrong, this is a chicken-s**t move by UHC to make the ACA look bad.

Here are the FACTS about UHC's profits for 2015 -

Ended the year exceeding analysts expectations.

Total revenue in the fourth quarter hit $43.6 billion, up 30% from the previous years fourth quarter.

For the full year, the Minnesota-based company said revenue grew to more than $157 billion, up 20% compared with 2014. Driving growth was the companys Optum segment, which handles pharmacy benefit management, technology, clinics and other services. Optums 2015 revenue grew 42%, while UnitedHealthcares grew 10%.

YEARLY REVENUE UP 20% compared to 2014, LAST QUARTER EARNING UP 30% compared to last year.

As you can see, the ACA is NOT hurting UHC, they are just sick bastards that think 20% and 30% INCREASES IN REVENUE are not good enough.

If you buy that crap, I guess you better quit your jobs the next time they do not give you a quarterly raise of 30% and a yearly raise of 20%

As always, the FACTS separate the bulls**t from the partisan hysteria.

PrairieSeasons Loc: Red River of the North

kd7eir wrote:

If you think this has anything to do with losing m... (show quote)

Interesting observations, but what do revenue increases have to do with net income increases? You can have one without the other.

I'd be more interested in what happened at the bottom line that at the top line.

Bazbo Loc: Lisboa, Portugal

Checkmate wrote:

Proof Spazbo?

Proof of what? Ryans Social Security plan? Or the Heritage Foundation roots of the ACA?

Its in the public record. I am not doing your research for you and I am not going to fetch sticks for someone who thinks insult is the same as argument. Ask respectfully, and I might help you.

Get someone to show you how Google works.

kd7eir Loc: Tucson, AZ

PrairieSeasons wrote:

Interesting observations, but what do revenue increases have to do with net income increases? You can have one without the other.

I'd be more interested in what happened at the bottom line that at the top line.

https://www.google.com/finance?q=NYSE:UNH&fstype=ii

kd7eir Loc: Tucson, AZ

I've simplified the financial report for those not familiar with reading them -

UHC income (total revenue - total expenses) in millions

Q1 2015 2640
Q2 2015 2895
Q3 2015 3018
Q4 2015 2428

Q1 2016 2960

As you can see, this company is NOT losing money, and is STILL beating all expectations. They are simply GREEDY BASTARDS.

Keep in mind that the dip in Q4 2015 earnings STILL beat expectations.

PrairieSeasons Loc: Red River of the North

kd7eir wrote:

I've simplified the financial report for those not familiar with reading them -

UHC income (total revenue - total expenses) in millions

Q1 2015 2640
Q2 2015 2895
Q3 2015 3018
Q4 2015 2428

Q1 2016 2960

As you can see, this company is NOT losing money, and is STILL beating all expectations. They are simply GREEDY BASTARDS.

Keep in mind that the dip in Q4 2015 earnings STILL beat expectations.

Of course they're greedy - they're a for-profit company. The data shows that running the overall company was profitable in the quarters shown. It doesn't show anything about the profitability or viability of their Obamacare business.

Profitable companies divest themselves of unprofitable parts of their business every day. The well-run ones do it sooner rather than later.

boberic Loc: Quiet Corner, Connecticut. Ex long Islander

Those who have said that United is or is not making a profit are missing the point. If every insurance dropped out of ACA coverage the law would fail. THATS the point of my post. United dropped out because the did not see future benefits in participating. They did not want to wait untinn they were in the red.

kd7eir Loc: Tucson, AZ

boberic wrote:

Those who have said that United is or is not making a profit are missing the point. If every insurance dropped out of ACA coverage the law would fail. THATS the point of my post. United dropped out because the did not see future benefits in participating. They did not want to wait untinn they were in the red.

Funny, because the most recent quarter shows an INCREASE IN PROFITS, so they are NOT LOSING MONEY.

When your earnings are EXCEEDING EXPECTATIONS then you are not worried about going in the red. That logic would mean that if your income were $5000 a month AND GROWING, and your bills were $3000 a month, that you would cut back your bills because you were afraid of losing money.

UHC's income is CONSISTENTLY EXCEEDING THEIR EXPENSES by even greater margins than they expected - that is not a sign of impending doom, it's proof that your business model is working.

Racmanaz Loc: Sunny Tucson!

kd7eir wrote:

If you think this has anything to do with losing m... (show quote)

You are interpreting their loses from the ACA exchange with their profits from policies outside of ACA wrong..

UnitedHealth's ACA exchange losses reach $720 million
http://www.modernhealthcare.com/article/20160119/NEWS/301199998

PrairieSeasons Loc: Red River of the North

kd7eir wrote:

Funny, because the most recent quarter shows an IN... (show quote)

As an individual, why wouldn't I evaluate expenses even if my income more than covered them? It's an issue of spending wisely, not of fear of losing money.

As a company, why wouldn't I evaluate all portions of the business even though the overall bottom line was positive? Most companies constantly evaluate all of their business to see whether their performance aligns with their goals and objectives. When a profitable company sheds a portion of their business that isn't meeting its goals and objectives, it's a sign of good management.