Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

More U.S. counties to see Obamacare marketplace monopoly: analysis

Published 08/28/2016, 10:54 PM
Updated 08/28/2016, 11:00 PM
© Reuters. Obama delivers remarks about health insurance marketplace enrollments and the Affordable Care Act, commonly known as Obamacare, in Milwaukee, Wisconsin

By Trevor Hunnicutt

NEW YORK (Reuters) - Nearly a third of U.S. counties will likely be served by only one insurer that participates in an Affordable Care Act (ACA) marketplace in 2017, according to an analysis published Sunday by the Kaiser Family Foundation.

The 31 percent of U.S. counties that will have just a single option of insurers within the ACA's exchanges would represent an increase from 7 percent this year, the nonpartisan group found.

UnitedHealth Group Inc (N:UNH) and Aetna Inc (N:AET) have decided to largely exit government-run online marketplaces in 2017 that sell subsidized plans created under President Barack Obama's national healthcare reform law, citing low enrollment and high service costs.

The bulk of the decrease in counties with a choice of insurers is due to UnitedHealth's pullback, which was announced in April.

The data underscores the degree to which industry retrenchment is curtailing individual's options within the marketplaces. Insurer departures may lead to higher costs within that market, analysts have said.

One county - Pinal County, Arizona - risks having no insurer options at all within the marketplace, the analysis found.

However, the study's authors said another plan offered elsewhere in the state could expand to serve the county. The foundation also said it could take more months and more data for the full impact of the changes for 2017 to become clear.

© Reuters. Obama delivers remarks about health insurance marketplace enrollments and the Affordable Care Act, commonly known as Obamacare, in Milwaukee, Wisconsin

A spokeswoman for the U.S. Department of Health and Human Services was not immediately available for comment, but the agency has said that the ACA has helped increase the number of options available to individuals.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.