April 18, 2016

If Losses Persist, ACA Marketplace Exits ‘Not Out of the Question,' Mike Adelberg Tells The Hill

Insurers are sounding a more dire tone in expressing concerns that their Affordable Care Act (ACA) plans are losing money at an unsustainable rate. According to The Hill, experts expect insurers to ask regulators to approve significant increases on ACA plan rates in 2017 to try to balance the scales. The majority of health care providers have lost money providing coverage to enrollees in the Health Insurance Exchanges, where members have proven to be less healthy—and more costly—than people who receive coverage in other parts of the commercial market.

“Given that most carriers have experienced losses in the exchanges, often large losses, it only makes sense that most exchange insurers will request significant rate increases for 2017,” Mike Adelberg, senior director at FaegreBD Consulting, told The Hill

“Market exits are not out of the question if an insurer is looking at consecutive years of losses and regulators are unable to approve rates that get the insurer to break-even.” 

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