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Insurers adapt to ACA, but individual market hurdles remain

Insurers are adapting to the health care laws challenges, but hurdles to individual market profitability remain, according to a Moodys report issued Tuesday.

By Katie Kuehner-Hebert | Updated on August 29, 2017
Many of Moody’s rated companies have de-emphasized or exited their ACA businessPhoto: iStock

After collectively losing between $6.9 billion and $8.4 billion on the Affordable Care Act’s exchanges in 2016, insurers are adapting to the health care law’s challenges. But hurdles to individual market profitability remain, according to a Moody’s report issued Tuesday. 

After sustaining initial losses in the market’s early years, many of Moody’s rated companies have de-emphasized or exited their ACA business, according to the report. Companies remaining in the individual market have adapted by adjusting their geographic range, raising premiums and narrowing their provider networks. Moody’s analysts expect a modest improvement in the segment’s 2017 results, “although risks remain.” 

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Katie Kuehner-Hebert

Katie Kuehner-Hebert

Katie Kuehner-Hebert is a freelance writer based in Running Springs, Calif. She has more than three decades of journalism experience, with particular expertise in employee benefits and other human resource topics.

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