May 1 Cigna Corp Chief Executive Officer David Cordani on Thursday said the health insurer expected to lose money on its new individual insurance business this year, based on what it has seen in the first quarter.
Cordani said that people who signed up during the early months of enrollment for the new Obamacare plans were older than it expected, bought richer coverage and used medical services more.
Later enrollees were younger and in line with the company's outlook, he said, but they have not yet begun to use their services so medical utilization rates remain unknown.
When asked if the company would lose money on the business, Cordani replied: "Correct." (Reporting by Caroline Humer; Editing by Lisa Von Ahn)