UnitedHealth (UNH) has warned that it might withdraw from Obamacare.
UnitedHealth said that it will look over data from public exchange markets for the first half of 2016 to determine if it can remain a part of Obamacare in 2017. Those that buy insurance plans through the Affordable Care Act usually use them a lot and are causing companies to lose more money than what they first expected, reports USA Today.
UnitedHealth was careful with its expansion into Obamacare and it having trouble turning profit could be a sign of problems for other insurance companies. The Obama administration has argued that it will take time for the public exchange market to stabilize and that small changes to the law will help it improve in the first few years, USA Today notes.
“We cannot sustain these losses,” Stephen Hemsley, CEO of UnitedHealth, told The Los Angeles Times. “We can’t really subsidize a marketplace that doesn’t appear at the moment to be sustaining itself.”
UNH shares were down 5% as of Thursday afternoon.
More From InvestorPlace:
