Molina Healthcare Inc (MOH.N) said on Wednesday it would stop selling Obamacare plans in Utah and Wisconsin, joining a slew of health insurers that have exited Obamacare markets amid uncertainty over the healthcare law.
Shares of the company, which pulled its full-year earnings and adjusted earnings forecast, were down 8.8 percent at $60.99 in after-hours trading.
The health insurer said it would exit the markets effective Dec. 31 and would also reduce coverage in Washington. The company specializes in Obamacare and Medicaid programs for low-income and poor people.
Molina and other insurers are facing an upheaval in their health insurance businesses due to uncertainty over the healthcare legislation as Republican lawmakers seek to follow through on their promise to repeal and replace the Affordable Care Act, popularly known as Obamacare.
The health insurer said it would raise premiums by 55 percent in the remaining markets in 2018, adding that the increase would have been only 30 percent had the government committed on making the subsidy payments.
Insurers have asked the government to commit to making the $8 billion in payments for 2018.
President Donald Trump on Monday took aim at insurers by threatening to cut the healthcare subsidy payments that make Obamacare plans affordable.
Molina said it would lay off about 1,500 corporate and health plans employees, or about 7 percent of its total workforce, by the end of the year as part of the restructuring.
The health insurer posted a net loss of $230 million, or $4.10 per share, in the second quarter ended June 30, compared with a profit of $33 million, or 58 cents per share, a year earlier.
The company said certain significant items increased loss before income tax benefit in the second quarter by about $330 million.http://archive.is/xHzrNhttp://www.reuters.com/article/us-molina-health-restructuring-idUSKBN1AI2SW