Anthem's CEO told CNBC on Thursday it was a "complicated decision" to pull out of Ohio's Obamacare market, but said the model had become unsustainable.
The health insurer announced earlier this month that it will effectively exit its Obamacare individual plans in the Buckeye State. Anthem, which sells Affordable Care Act plans in 14 states this year, left the door open to dropping out of other states this year.
CEO Joseph Swedish told CNBC the company has repeatedly said that it very carefully evaluated the Obamacare marketplace.
"We've also said that it's possible without the right kinds of changes with respect to funding levels and other regulations associated with the Affordable Care Act that we may have to exit certain markets because those markets are not sustainable," he said in an interview with "Closing Bell."
Because there have been very few adjustments, the operating model has "deteriorated substantially."
"Adjustments have not occurred and certain decisions have not been made to further strengthen or stabilize that marketplace. ... [W]e've come to sort of a fork in the road in terms of our inability to service our communities," Swedish said.
"Fixing the individual market, fixing the Affordable Care Act and possibly getting to some new model of delivery for the individual marketplace will evolve so that sustainability is created," he said.
— CNBC's Bertha Coombs and Dan Mangan contributed to this report.