UnitedHealth Prunes Its ACA Exchange Business

The nation's biggest health insurer has decided to stop selling coverage on public insurance exchanges in two states for next year, but consumers shouldn't take this as an early warning that a mass exodus is brewing from a key element of the Affordable Care Act's coverage expansion.

Analysts say these exchanges may be improving for insurers after a difficult start. However, they also expect insurers to continue leaving some unprofitable markets as the coverage expansion heads toward its fourth year.

UnitedHealth Group Inc. said it will not sell coverage on exchanges in Arkansas and Georgia for 2017, and it is continuing to evaluate its presence in other markets after reporting steep losses from the still-developing business.