History and Money, Immigrants into the U.S.

Drug traffic route in the region

by: Susan Fitzpatrick Behrens

The porous 600-mile border between Guatemala and Mexico offers Central American immigrants a ready passage to “el norte“—the United States. It includes 63 uncontrolled transit points, 44 of which can be passed in a vehicle.

The same conditions attracting Central American immigrants also make the Guatemala-Mexico border region home to a thriving drug trade. Guatemala’s Prensa Libre, recently reported that Guatemala’s three departments (or states) bordering Mexico—San Marcos, Huehuetenango, and the Petén—have come under the direct control of violent drug cartels.

In San Marcos, a single drug lord, Juan Ortiz Chamalé, owns virtually all of the properties on the frontier. Huehuetenango is the site of an increasingly violent conflict between Mexican and Guatemalan drug lords. The latest incident there involved a wholesale massacre of 17 to 40 people (estimates vary) at a horserace organized by narcos. While in the Petén, drug mafias, supported by the police, have forced small and large landowners to sell their lands.

Violence, promoted by the drug trade, delinquency, and death squads has become a part of daily life in these Guatemalan departments. Bodies riddled with bullet holes regularly appear by the sides of roads, along riverbeds, and in open fields. Well-documented evidence demonstrates that police and military forces are directly engaged in this violence through their links to drug cartels, the maras (gangs), and death squads.

Undocumented Central American immigrants, fleeing the struggling economies of their respective countries, are often victimized by this violence. And their plight is about to get worse. The recently implemented U.S.-Central American Free Trade Agreement (CAFTA) will surely devastate what is left of rural livelihoods. And, what’s more, the conditions that make the Guatemala-Mexico border an immigrant corridor and a Mecca for drug trafficking also make it a central target of Plan Mexico, the U.S.-financed anti-drug militarization program, pushed through the U.S. Congress by President George Bush in June 2008.

Undocumented Central American immigrants, already subjected to subhuman conditions in their search for viable livelihoods, now face the oppressive confluence of these powerful transnational forces—the drug trade, militarization, and free trade.

Plan Mexico

The U.S.-backed Plan Mexico, known as the “Mérida Initiative” in policy circles, provides $1.6 billion of U.S. taxpayer money to Mexico, Central America, and the Caribbean. The stated intention of the program involves “security aid to design and carry out counter-narcotics, counter-terrorism, and border security measures.”

U.S. Congressional leaders complained about the secrecy of negotiations for Plan Mexico and the absence of human rights guarantees, but they did nothing more than demand the paltry sum of $1 million in additional funding to support human rights groups in Mexico.

Researcher Laura Carlsen has noted that Plan Mexico is the “securitized” extension of trade agreements such as the North American Free Trade Agreement and CAFTA. Indeed, Plan Mexico is the successor project to the Security and Prosperity Partnership (SPP), a post-9/11 initiative negotiated by the NAFTA countries. The State Department’s Thomas Shannon made the link between free trade and security explicit: “We have worked through the Security and Prosperity Partnership to improve our commercial and trading relationship, we have also worked to improve our security cooperation. To a certain extent, we’re armoring NAFTA.”

Evidently, neoconservative policy framers have purposefully coupled free trade and security. Free trade agreements promote the free circulation of goods, while prohibiting the same circulation by workers. Since neoliberal trade deals eliminate agricultural subsidies and open poor countries to a flood of cheap imported goods, economically displaced workers will naturally seek new sources of income—even if that means crossing borders.

Militarizing borders and identifying undocumented workers who cross them as criminals (“illegal”) are the logical—though sordid—next steps in anticipating and “guarding against” the effects of free trade. The militarization of borders has done nothing to stop immigration, which provides an essential labor force to the United States. But the criminalization of undocumented mobile immigrant workers has deprived them of basic rights of citizenship, thereby making them vulnerable to increasing levels of violence and human rights violations.

The U.S.-driven designation of “internal enemies”—in this case immigrants—as a rationale for building an already mushrooming security apparatus and militarizing societies is, of course, nothing new, especially in Latin America. What is new is that this militarization has become nearly void of any social content. Even during the Cold War, U.S. “national security” doctrines were generally accompanied by social programs, such as the Alliance for Progress and the Peace Corps, which in small measure alleviated poverty and explicitly recognized economic conditions as a root of “the problem.”

The end of the Cold War eliminated an even token emphasis on poverty and with it, all but the most minimal efforts to offer social assistance. The Washington Office on Latin America (WOLA) found that the Bush administration granted $874 million in military and police assistance to Latin America in 2004 an amount almost equal to the $946 million provided in economic and social programs. WOLA reported that with the exception of Colombia, military and police aid has historically been less than half of the total provided for economic and social aid. Moreover, military and police aid used to be directed by the U.S. State Department, assuring a degree of congressional oversight. Now, this aid is increasingly managed by the Department of Defense, thereby eliminating this oversight and effectively making militarization the predominant rationale of U.S. foreign policy.

Living on the Border

The situation of Central American immigrants on Mexico’s southern border illustrates the central problems and contradictions of Washington’s emphasis on free trade and militarization. And the situation is certain to get worse as thousands of immigrants are deported by the United States to their countries of origin in Central America.

Immigrants are fully aware of the risks they take, but economic conditions leave them few alternatives. With a look of desperation following a three-day journey from his home, one Honduran immigrant in the Mexican border town of Tapachula explained, “We don’t do this by choice. We don’t want to leave our families. But imagine a man looking at his children and seeing them hungry.” Back home, he faces wages averaging $6 per day in Honduras and a scarcity of opportunities.

When asked about the dangers they anticipate on their journey north, Central American immigrants offer a catalog of terrors: beatings, sexual assaults, robberies, kidnappings, and murders. Ademar Barilli, a Catholic priest and director of the Casa del Migrante in Guatemala’s border town of Tecún Umán, observed, “Immigrants almost expect that their rights will be violated in every sense because they are from another country and are undocumented.”

Heyman Vasquez, a Catholic priest who directs a shelter for migrants in the town of Arriaga in Chiapas, Mexico, maintains detailed records of the violations suffered by migrants passing through his shelter. In a five-month period in 2008, a third of the men and 40% of the women he serves reported assault or some other form of abuse in their 160-mile journey from the Mexico-Guatemala region to Arriaga.

Police are often the perpetrators of these violations. In Guatemala, Father Barilli and others described cases of police forcing Salvadoran and Honduran immigrants to disembark from buses, where they take their documents and demand money. Once they make it into Mexico, immigrants are subject to abuse by Los Zetas, a notorious drug-trafficking network composed of former law enforcement and military agents linked with the Gulf Cartel.

Los Zetas are known to work with Mexican police in the kidnapping of immigrants to demand money from their family members in the United States. Immigrants also report robberies, beatings, and rapes at the hands of Los Zetas. Recently, in Puebla, Mexico, 32 undocumented Central Americans were kidnapped and tortured by the Zetas with the support of municipal police. In this case, after the migrants escaped, local community members captured a number of the responsible police agents and held them until Federal authorities arrived.

A U.S. State Department report on human rights in Mexico from 2007 concluded, “Many police were involved in kidnapping, extortion, or providing protection for, or acting directly on behalf of organized crime and drug traffickers. Impunity was pervasive to an extent that victims often refused to file complaints.”

That impunity means abused migrants have few places to turn is painfully obvious to one Salvadoran immigrant in the Mexican border town of Tapachula. He had just been deported from the United States, where his wife, a legal resident, and two U.S.-born children live in Los Angeles. “The police are involved. You can’t file complaints,” he said. Besides, the wheels of Mexican justice turn notoriously slow—if at all.

Despite the dire scenario, it is not uncommon for many Central American immigrants to receive a helping hand along the way in their journey to El Norte, whether its food, water, money, or shelter. As one undocumented Honduran explained in Tapachula, “Almost everyone has someone in their family who has migrated. Most understand the need.”

“Security” and Violence

Security initiatives in Central America are notoriously violent and further militarize societies still recovering from decades of brutal civil wars. And, historically, when the Pentagon gets involved, repressive tactics increase.

The Bush administration’s principle security concerns in Central America of drug trafficking and “transnational gangs” have led to a series of “security cooperation” agreements. The first regional conference on “joint security” was chaired by El Salvador’s president, Tony Saca, who first introduced the “Mano Dura” (Iron Fist) initiative—a package of authoritarian militarized policing methods aimed at youth gangs adopted throughout the region. In attendance was then-U.S. Attorney General Alberto Gonzales, responsible for advocating torture of prisoners in Guantánamo.

The conference took place in El Salvador in February 2007 and resulted in the creation of a transnational anti-gang unit (TAG), which El Salvador’s justice and security minister, René Figueroa described as “an organized offensive at a regional level,” with the US State Department and the FBI coordinating with national police forces. Gonzales, promised Washington would finance a new program to train regional police forces and this promise has been fulfilled partially with the establishment of a highly controversial police-training academy in El Salvador, which is closed to public scrutiny and includes little support for human rights.

In many ways, Plan Mexico, is a mano dura campaign writ large. For 2008, Plan Mexico will provide $400 million to Mexico and $65 million to Central America. More than half of the total funds will go directly to providing police and military weapons and training, even though the police and military in these countries have been implicated in crime and human rights violations.

As Plan Mexico arms and trains military and police forces implicated in violent crime, it also provides millions of dollars for an immigration institute responsible for tightening Mexico’s southern borders through monitoring, bio-data collection, a Guatemalan guest-worker program, and border control.

Undocumented immigrants will be caught in the web of this violence, particularly since Plan Mexico also continues the trend toward the criminalization of migrants. As Laura Carlsen, observes, “By including ‘border security’ and explicitly targeting ‘flows of illicit goods and persons,’ the initiative equates migrant workers with illegal contraband and terrorist threats.”

The dehumanization of undocumented immigrants in the United States, and elsewhere, and the growing infringement of their basic rights should serve as a dire warning to all “citizens.” The undocumented are the canaries in the coalmine: the violation of their rights signals a growing repressive climate that jeopardizes everyone’s liberties.

Fire on the Border

Free trade agreements create the conditions that force people to migrate to the United States as an underpaid, politically disenfranchised, and therefore unprotected labor force. Now the economic crisis in the United States has increased pressure to expel undocumented workers, violating a host of human rights standards in the process. Deportations also increase labor pressure in immigrants’ countries of origin, where the global economic crisis stands to further decrease the already limited opportunities for work in “legitimate” industries.

From a purely humanitarian perspective, the governments of the United States, Mexico, and Central America need to address this crisis by developing policies that improve the conditions of poverty that cause immigration. Throwing guns at the problem will only make things worse.

Sure, drug lords are firmly entrenched in the Guatemala-Mexico border region. But Plan Mexico will no more eliminate their presence, than the Mano Dura campaigns eliminated the gangs. Or, for that matter, any more than the militarization of borders has eliminated immigration. Instead, Plan Mexico, like its predecessors, will increase the level of violence in the region by providing more weapons to corrupt police and military forces.

As more and more resources shift toward militarization, policing and surveillance, fewer resources are available for programs that ease pressure to emigrate—namely, education, jobs, medical care, food subsidies, housing, and legal recourse. Meanwhile, governments are increasingly ceding responsibility for protection of even narrowly defined human rights to under-funded non-governmental organizations.

Repressive immigration policies, narcotrafficking, and free trade all combined to form a combustible situation along the Mexico-Guatemala border. Plan Mexico is the spark, and once the flames start, no one will be able to put out the fire. And it’s the undocumented migrants who will continue to get burned.

A New Scheme for Syrian Refugees?

Related: Obama pledge to welcome 10,000 Syrian refugees far behind schedule

Read more from the White House directly:

Refugees Welcome graphicInfographic: The screening process for refugee entry into the U.S.
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Refugees Welcome graphic
By the numbers: What you need to know about Syrian refugees in the U.S.
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“Alternative Safe Pathways” for Syrian Refugees – Resettlement in Disguise? 

By Nayla Rush

CIS.org: With the Syrian crisis entering its sixth year, the United Nations High Commissioner for Refugees (UNHCR) is thinking of “innovative approaches” to organize Syrian admissions, alongside the refugee resettlement program, to countries willing to welcome them. UNHCR’s target for resettlement is 480,000 places over the next three years; it is not sure how many additional admissions into the U.S. and elsewhere these new “alternative safe pathways” will ensure. Refugees who are not resettled could be “legally admitted” using various routes described below.

The legitimacy and transparency of these new “alternative pathways,” aimed at admitting increasing numbers of Syrian refugees into the United States without calling them “refugees,” remain to be seen. They might even amount to convenient admissions detours at a time when the U.S. refugee resettlement program is under tight scrutiny.

In a panel discussion on The Global Refugee Crisis: Moral Dimensions and Practical Solutions organized by the Brookings Institution earlier this year, Beth Ferris, Research Professor at Georgetown University and adviser to the United Nations Secretary General on humanitarian refugee policy, talked about the need to find different solutions to the ongoing humanitarian Syrian crisis. The refugee resettlement program was no longer sufficient to admit Syrian refugees she said; “alternative safe pathways” are needed:

Refugees and government officials are expecting this crisis to last 10 or 15 years. It’s time that we no longer work as business as usual … UNHCR next month [March 2016] is convening a meeting to look at what are being called “alternative safe pathways” for Syrian refugees. Maybe it’s hard for the U.S. to go from 2,000 to 200,000 refugees resettled in a year, but maybe there are ways we can ask our universities to offer scholarships to Syrian students. Maybe we can tweak some of our immigration policies to enable Syrian-Americans who have lived here to bring not only their kids and spouses but their uncles and their grandmothers. There may be ways that we could encourage Syrians to come to the U.S. without going through this laborious, time-consuming process of refugee resettlement.” (Emphasis added.)

The UNHCR conference Ferris was referring to took place in Geneva this March 30. It is one of a series of initiatives aimed at comprehensively addressing the Syrian crisis in 2016. The Geneva “High-level meeting on global responsibility sharing through pathways for admission of Syrian refugees” focused on the need for a substantial increase in resettlement numbers and for “innovative approaches” to admit Syrian refugees. It followed February’s London Conference on Syria, which stressed the financial aspect of this humanitarian crisis ($12 billion pledged in humanitarian aid) and precedes a September 2016 high-level plenary meeting of the United Nations General Assembly in New York. Worthy of note here, President Obama will host a global refugee summit this September 20 on the margins of this upcoming General Assembly meeting.

The focus of the Geneva meeting was to introduce “other forms of humanitarian admissions” since “[r]esettlement is not the only aim”, explained UNHCR’s spokesperson. UN High Commissioner for Refugees Filippo Grandi appealed to the international community in his opening statement, calling for “alternative avenues” for the admission of Syrian refugees:

These pathways can take many forms: not only resettlement, but also more flexible mechanisms for family reunification, including extended family members, labour mobility schemes, student visa and scholarships, as well as visa for medical reasons. Resettlement needs vastly outstrip the places that have been made available so far… But humanitarian and student visa, job permits and family reunification would represent safe avenues of admission for many other refugees as well.

At the end of the meeting, Grandi highlighted several commitments made by a number of participants in his closing remarks. Promises were made to:

  • Increase the number of resettlement and humanitarian admission places.
  • Ease family reunification and increase possibilities for family reunion.
  • Give scholarships and student visas for Syrian refugees.
  • Remove administrative barriers and simplify processes to facilitate and expedite the admission of Syrian refugees.
  • Use resources provided by the private sector in order to create labor mobility schemes for Syrian refugees.

The Geneva meeting was attended by representatives of 92 countries, including the United States. Heather Higginbottom, Deputy Secretary of State for Management and Resources, reiterated in her remarks the U.S. commitment to refugees: “President Obama has made assisting displaced people a top priority for the U.S. government.” Last year alone the U.S. contributed more than $6 billion to humanitarian causes. So far this year, the United States has provided nearly $2.3 billion in humanitarian assistance worldwide. She also announced additional measures: “We are further increasing our support of Syrian refugees, and we will make additional contributions to the global displacement effort through September, and beyond”, while reminding the participants of President Obama’s role in hosting a high-level refugee summit this September.

The U.S. State Department released a Media Note following the Geneva meeting. It confirmed the goal of resettling at least 10,000 Syrians in FY 2016 and of 100,000 refugees from around the world by the end of FY 2017 – an increase of more that 40 percent since FY 2015. It also announced the following:

  • “The United States pledged an additional $10 million to UNHCR to strengthen its efforts to identify and refer vulnerable refugees, including Syrians, for resettlement.”
  • The United States joins UNHCR in calling for new ways nations, civil society, the private sector, and individuals can together address the global refugee challenge.”
  • “Additionally, the United States has created a program to allow U.S. citizens and permanent residents to file refugee applications for their Syrian family member.” [Emphasis added.]

On this last note, why create a family reunification program for Syrian refugees when refugees in the U.S. are already entitled to ask for their spouse and unmarried children under 21 to join them? Unless of course, the aim is to widen family circles to include aunts and uncles, brothers and sisters, grandmothers and grandfathers.

Let’s see if we got this right: More Syrian refugees are to be resettled in the United States; administrative barriers (including security checks?) are to be removed to expedite admissions. Come to think of it, this is exactly what we witnessed with the “Surge Operation” in Jordan, where refugee resettlement processes were reduced from 18-24 months to three months in order to meet the target of 10,000 Syrian refugees this year.

Moreover, the United States government, by its own admission, “joins UNHCR in calling for new ways” to move more Syrians to other countries. With the U.S. Refugee Resettlement program under close scrutiny, other routes for “legal admissions” (not “resettlement”) of Syrian refugees into the United States seem more appropriate. Those routes may vary from private sponsorships, labor schemes, expanded family reunification programs, humanitarian visas, medical evacuation, to academic scholarships and apprenticeships, etc.

What remains to be determined is how transparent these “alternative pathways” will be. Will we be given details about numbers, profiles, locations, screening, or costs? Also, what additional measures are we to expect from this administration as it prepares to host a Global Refugee Summit this September 20?

Meanwhile, we are left to wonder: aren’t these “pathways” for refugees nothing more than disguised resettlement routes? Akin to “pathways to citizenship” in lieu of amnesty…

Classified Obamacare Documents?

The House Oversight and Government Reform Committee, filed the subpoenas in 2013, see the announcement here. In part:

The Committee initially requested information on the CO-OP program in October 2012 and again in March 2013. A June 7, 2013 letter to Secretary Sebelius stated, “[T]his delay is unacceptable and your lack of transparency is troubling.”

The Obamacare CO-OP program used taxpayer money to loan $2 billion to companies establishing non-profit health insurance issuers. However, the Office of Management and Budget estimated the taxpayer losses for the loans at 43.2 percent. Moreover, several companies have experienced legal or financial troubles. For instance, the Vermont Health Co-op, which received a $34 million taxpayer-backed loan, was last month denied an insurance license by the state of Vermont. In letters to HHS, the Committee expressed concern that the process used to select loan recipients was flawed and lacked transparency.

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The Obamacare co-ops are tax-funded non-profit entities that were supposed to compete with private insurance companies.  In this, they have failed spectacularly.  In the last couple of years, 12 of the co-ops have shut their doors, costing doctors and hospitals million of dollars in losses.  This year, some experts are predicting that up to 8 of the 11 remaining co-ops will go under as well. More here from AmericanThinker.
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IBD: Being the “most transparent administration” in history apparently doesn’t mean complying with a congressional subpoena to find out why more than half of the ObamaCare co-ops have failed.

That’s what the House Oversight and Government Reform Committee is learning, at least. It has subpoenaed information relating to the 23 nonprofit co-op insurance companies that ObamaCare established with $2.5 billion in government loans.

The co-ops were supposed to provide price competition against commercial insurers, but last year many pushed for and got huge, double-digit rate hikes. Even so, more than half of the 23 set up have failed already, and it’s likely that eight more will collapse this year.

Given that taxpayers are on the hook for billions in loans that might never get repaid, it is only fitting that Congress should find out what went wrong and why.

But instead of providing answers, the Obama administration is stonewalling.

Oversight Committee Chairman Jason Chaffetz said at a hearing this week, “Health and Human Services has not provided any valid legal reason for withholding information from this committee.”

The committee demanded documents back in November that would shed light on how the administration picked these co-ops, how much money has been spent and what plans the administration has to get federal loan money back from failed co-ops.

Chaffetz says that Obama officials merely “assert that if certain information was released publicly, it could cause consumers to think twice before enrolling in co-op insurance plans.”

That makes absolutely no sense. If other co-ops are likely to fail, then consumers should be aware of it, so they can avoid having their coverage disrupted midyear, which could mean changing doctors, paying higher out-of-pocket costs and so on.

This is hardly the first time that the administration has stonewalled congressional inquiries. If anything, it seems to be the unstated policy of the Obama administration.

In addition to the ObamaCare documents, for example, the Oversight Committee is battling to get documents related to the EPA’s massively expensive water regulations, the Department of Homeland Security’s policy on airport credentialing, the massive hack of government employee records and so on.

Obama officials get away with concealing anything and everything that might prove embarrassing or controversial because the “speaking truth to power” mainstream press largely ignores the stonewalling. So the White House doesn’t suffer any consequences or feel any pressure to change.

You can bet the media’s lackadaisical attitude about government transparency will suddenly change if a Republican ends up in the White House next year. But in the meantime, we may never get a clear answer to why the Obama administration flushed $2.5 billion in taxpayer money down the drain.

AmeriCorps: Broke the Rules with ‘abortion doulas’

AmeriCorps’ abortion escorts broke federal rules

TheHill: Several members of the national service program AmeriCorps recently escorted young pregnant women to abortion clinics in a “direct violation” of federal funding rules, a government watchdog will report Tuesday.

The volunteers served as clinic escorts, also known as “abortion doulas,” in parts of New York City, according to a source familiar with the report from a federal inspector general’s office. A summary of the report will be published online Tuesday.

In their roles, such volunteers provide emotional support to women seeking abortions, as well as transportation to and from the clinics if needed. That service is prohibited under the language of federal grants that helps fund the program, the source said.

The violation took place among “a few volunteer members” at one of the 38 community health centers that works with AmeriCorps’s health branch, according to a statement from the National Association of Community Health Centers (NACHC), which oversees AmeriCorps’ health volunteers.

Dave Taylor, chief operating officer of NACHC, said in a statement to The Hill that the group’s leadership “self-reported the issue to the proper authorities” immediately after learning about the potential violations.

“We take this matter seriously,” Taylor said, adding that the NACHC has cooperated with the White House’s community service office and the watchdog group throughout the investigation. He declined to provide any details about the investigation, but said his organization had received a copy of the full report.

The group said its response to the investigation has been far-reaching. Taylor said it quickly took steps to stop the program, while also requiring program staff to be retrained on “all relevant rules and regulations related to AmeriCorps prohibited activities.”

“We moved immediately to cease the activity in question, and suspended the identified site’s AmeriCorps members for a period until they and their site supervisors were retrained and revised member service contracts were reviewed and signed,” Taylor wrote in a statement.

The group also revised the contracts of 500 other partners “to prevent future misinterpretations.”

AmeriCorps is a federally funded community service program with about 80,000 volunteers nationally. The program is managed by the White House Corporation for National and Community Service, which received about $1.1 billion in federal funds last year.

**** In 2009, AllGov: Abortion Referral Prohibited for AmeriCorps

AmeriCorps became the center of media attention when the Edward M. Kennedy Serve America Act passed, tripling AmeriCorps’ size and allotting $5.7 billion in federal funding for the community service programs it provides. Few news sources noticed one controversial stipulation that was added to the bill: the prohibition of several activities, among them, abortion referral.

Beginning on October 1, AmeriCorps’ staff and members will be prohibited from “providing abortion services or referrals for receipt of such services.” In the past, AmeriCorps members have joined with clinics that offer abortion services and partnered with Planned Parenthood chapters to work on public health education topics. The new stipulation will allow members to volunteer or provide their services on their own time, but not while affiliated with AmeriCorps, itself.
Also included in the list of prohibited activities: engaging in protests, petitions, boycotts, or strikes; assisting, promoting, or deterring union organization; engaging in religious instruction and conducting worship services.

United Healthcare Bails on Obamacare

Nancy Pelosi, call holding on line 3.  There are other healthcare providers that are likely to bow out of Obamacare in 2017.

UnitedHealth pulls back on ObamaCare exchanges amid huge losses

FNC: The nation’s largest health insurer, fearing massive financial losses, announced Tuesday that it plans to pull back from ObamaCare in a big way and cut its participation in the program’s insurance exchanges to just a handful of states next year – in the latest sign of instability in the marketplace under the law.

UnitedHealth CEO Stephen Hemsley said the company expects losses from its exchange business to total more than $1 billion for this year and last.

Despite the company expanding to nearly three dozen state exchanges for this year, Hemsley said the company cannot continue to broadly serve the market created by the Affordable Care Act’s coverage expansion due partly to the higher risk that comes with its customers.

UnitedHealth Group Inc. said it now expects to lose $650 million this year on its exchange business, up from its previous projection for $525 million. The insurer lost $475 million in 2015, a spokesman said.

UnitedHealth has already decided to pull out of Arkansas, Georgia and Michigan in 2017, and Hemsley told analysts during a Tuesday morning conference call that his company will not carry financial exposure from the exchanges into 2017.

“We continue to remain an advocate for more stable and sustainable approaches to serving this market,” he said.

The state-based exchanges are a key element behind the Affordable Care Act’s push to expand insurance coverage. But insurers have struggled with higher-than-expected claims from that business.

A recent study by the Blue Cross Blue Shield Association detailed how many new customers nationwide under ObamaCare are higher-risk. It found new enrollees in individual health plans in 2014 and 2015 had higher rates of hypertension, diabetes, depression, coronary artery disease, HIV and Hepatitis C than those enrolled before ObamaCare.

On the heels of Tuesday’s announcement, Sen. Ben Sasse, R-Neb., said in a statement it’s a sign of “the President’s broken promise that families would have more choices under ObamaCare.”

The Kaiser Family Foundation, in an analysis on the prospect of United’s exit, said “the effect on insurer competition could be significant in some markets – particularly in rural areas and southern states” if it is not replaced.

In the most extreme scenario, “If United were to leave the exchange market overall, 1.8 million Marketplace enrollees would be left with two insurers, and another 1.1 million would be left with one insurer as a result of the withdrawal,” the analysis said.

UnitedHealth had moved slowly into the newly created market by participating in only four exchanges in their first year, 2014. But the company then expanded to two dozen exchanges last year and said in October it would add to that total. It currently participates in exchanges in 34 states and covers 795,000 people

A month after announcing its latest exchange expansion, UnitedHealth started voicing second thoughts. The insurer said in November that it would decide by the first half of this year whether to even participate in the market for 2017.

Insurers say they have struggled, in particular, with customers who have signed up for coverage outside regular enrollment windows and then dumped expensive claims on their books, a problem the government has said it would address.

A dozen nonprofit health insurance cooperatives created by the ACA to sell coverage on the exchanges have already folded, and the survivors all lost millions last year.

Other publicly traded insurers like Aetna have said that they have lost money on this business as well. But some companies, like Molina Healthcare, have said they have managed to turn a profit from the exchanges.

Analysts expect other insurers to also trim their exchange participation in 2017, especially if they continue to struggle with high costs.