Insurer Participation in ACA Marketplaces: Federal Uncertainty Triggers Diverging Business Strategies

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<p>A new analysis on <em>To the Point</em> sheds light on how states have maintained competition in their Affordable Care Act (ACA) health insurance marketplaces despite uncertainty about the federal government’s lack of commitment to implementing the ACA. Looking at insurer participation in the state-based marketplaces from 2014 to 2018, Georgetown University’s Emily Curran, Justin Giovannelli, and Kevin Lucia found that, while the average number of participating carriers has gradually declined, every county ultimately retained at least one in 2018, and nearly half of marketplace enrollees could choose among three or more insurers.</p>
<p>Officials from many of the state-based marketplaces reported that they work closely with insurers to secure participation. </p>

<p>Insurer participation — or the lack of it — seems to reflect different business strategies.<strong> </strong>“Some insurers continue to view the marketplaces as a viable business and are working to attract new membership,” the authors say. “Others are recovering from early losses and attempting to capture healthy enrollment through nonmarketplace alternatives.”</p> Read more