Insurer ACA Exchange Participation Declines in 2016

Among the consequences of the Affordable Care Act (ACA or Obamacare) are its effects on insurer competition, particularly in the law’s new government-run exchanges. By several different measures, insurer participation in the ACA exchanges declined in 2016.

The reduction in insurer participation in the ACA exchanges in 2016 resulted from a combination of state regulators closing down financially troubled carriers and insurers voluntarily exiting markets that they found unprofitable. In light of other indicators, that experience suggests that insurer participation in the ACA exchanges is likely to further decline in 2017.

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