Humana may become the second major insurer to exit the exchange business in certain states, as it reported losses Wednesday stemming from that market.
Humana reported a decrease of 45.6 percent, or $234 million in its first-quarter net income, due to costs from its proposed $37 billion merger with Aetna and losses in the individual commercial business, which includes the public exchanges, according to its financial statement.
Humana, which sells an exchange product in 15 states, did not say which states it could leave.
[Also: UnitedHealthcare to exit all but 'handful' of Obamacare markets in 2017]
"We are encouraged by the early indicators we are seeing in our Medicare and Healthcare Services businesses but remain cautious while our healthcare exchange experience continues to develop," CFO and Senior Vice President Brian A. Kane said in a statement.
Meanwhile Aetna expects to break even on the exchanges this year, as CEO Mark Bertolini expressed optimism about the Affordable Care Act market last week during an investor call.
Earlier this year, UnitedHealth Group announced it was leaving nearly all of the 34 states in which it does business on the exchanges, reporting product losses in that market of $650 million in 2016 and $475 million in 2015.
[Also: Aetna says Humana merger on track, reports big gains in Medicare Advantage segment]
Other insurers, such as Anthem, Centene and Harvard Pilgrim Health Care, have voiced the expectation of continued growth in the ACA segment.
Humana's first quarter earnings, announced Wednesday, showed cash flows from operations of $482 million compared to $107 million during the first quarter of 2015, solid early performance indicators for the individual Medicare Advantage market and a continuing challenge for the individual commercial business.
The Healthcare Services segment grew revenues in its pharmacy and home-based businesses with the related increase in pretax earnings partially offset by decreased profitability in the company's provider services business, Humana said.
Twitter: @SusanJMorse