United Healthcare parent United Health Group expects Obamacare’s fees, rate cuts and reforms to cost the health insurer as much as $1.9 billion next year, it disclosed at an investor conference this week.
United, which has operations in Hartford, said that equates to a hit to earnings per share of between 90 cents and $1.
The Affordable Care Act’s cuts to Medicare Advantage reimbursement rates — which prompted United to cut one-fifth of its Connecticut provider network in October — are expected to cost 25 cents per share in 2014.
Reinsurance and non-deductible insurer fees will make up the biggest piece of the earnings impact at 65 cents per share, United said.
The insurer also reaffirmed its previous 2014 earnings outlook of $5.40 to $5.60 per share, which is flat or slightly worse than its anticipated earnings for 2013 of $5.40 to $5.60 per share.
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