Eleven insurers exit ACA marketplace as premiums rise 15%

Eleven insurance companies have announced they will leave the Affordable Care Act marketplace this year. This departure coincides with a second consecutive year of double-digit premium increases for the remaining plans.

The exodus follows the expiration of pandemic-era subsidies. Congress chose not to renew these financial aids, causing prices to jump last year. Many consumers could not afford to renew their existing policies. Those who stayed in the marketplace switched to cheaper plans with lower coverage levels, though these new options still cost more than their previous rates.

This shift has reduced profitability for insurers. The remaining carriers are now raising prices by as much as 15%. This marks the second year in a row that the marketplace has seen such steep hikes. The result is a shrinking pool of available coverage options for enrollees.

Cigna is among the providers exiting the market. A spokesperson pointed to comments made by CEO Brian Evanko in April. Evanko stated that leaving aligns with the company's goals to position its core healthcare businesses for sustainable growth. He described the move as a strategic adjustment for the firm.

Cynthia Cox, director of the program on the ACA at KFF, noted the imbalance in the market. She said the main takeaway is that more insurance companies are leaving the marketplace than coming in. This trend reduces competition and limits the choices available to shoppers.

Open enrollment for ACA insurance began this weekend. The process has started with technical difficulties. Users report waiting up to 30 minutes for security codes when logging into the portal. The application interface now displays far fewer plan options than in previous years. The plans that remain are often priced high for consumers.

Miranda Yaver, an assistant professor of health policy and management at the University of Pittsburgh, warned of potential disruptions in care. She said the situation will create discontinuities in coverage for many people. If a doctor does not accept the fewer available plans, patients may face disruption, especially those with chronic illnesses. Yaver added that if the limited price points do not work for a consumer, it raises the question of whether they will remain covered.

For some individuals, the cost increase makes coverage unaffordable. One enrollee currently pays about $185 per month for a bronze plan. That same plan will now cost $322 per month. The individual said they would not be able to afford the higher price even while working two jobs. The choice is to go uninsured or hope to find a job that provides benefits.