11 Insurers Exit ACA Market

Eleven insurance companies have announced they will leave the Affordable Care Act marketplace. These exits follow the expiration of pandemic-era subsidies, a move by Congress that triggered a cascade of cost increases last year. The loss of those subsidies made premiums unaffordable for many, forcing shoppers to drop coverage or switch to cheaper, less comprehensive plans. The remaining carriers now face a market that is less profitable, prompting their departures.

The timeline of these changes began with the lapse of the enhanced premium tax credits. Last year, average prices rose sharply as a result. Many individuals who could not afford the new rates stopped renewing their policies. Those who stayed often selected bronze or high-deductible plans to lower their monthly out-of-pocket costs. Even these lower-tier plans cost more than they did before the subsidies expired. The shift in the customer base toward higher-risk or lower-revenue plans created a financial strain for insurers.

The current open enrollment period started this weekend. The number of available plans has decreased due to the 11 carrier exits. The companies that remain are raising prices by up to 15 percent. This marks the second consecutive year of double-digit price increases in the marketplace. Cynthia Cox, director of the program on the ACA at KFF, noted that more carriers are leaving than entering. She stated, “The main takeaway is that more insurance companies are leaving the marketplace than coming in.”

Cigna is among the carriers exiting the marketplace. A company spokesperson directed inquiries to comments made by CEO Brian Evanko in April. Evanko said that leaving the ACA marketplace aligns with goals to position the company’s “core healthcare businesses for sustainable growth.” The reduction in options leaves shoppers with fewer choices at higher price points. The average monthly premium for a bronze plan, for example, has jumped from approximately $185 to $322 in one reported case.

Miranda Yaver, an assistant professor of health policy and management at the University of Pittsburgh, warned of the impact on continuity of care. She said, “This is going to create a lot of discontinuities in care and coverage for people.” Yaver added that if a patient’s doctor does not accept the fewer available plans, the disruption can be severe, particularly for those with chronic illnesses. She asked, “And if the fewer available price points don’t work for you, are you going to remain covered?”

Shoppers logging into the marketplace website have reported technical issues, including long wait times for security codes. The application process now presents a narrower selection of plans than in previous years. For many working families, the increased cost of the most basic coverage exceeds their budget. Some are weighing the choice between going uninsured or relying on employer-sponsored benefits, if available. The enrollment window remains open, but the combination of higher costs and fewer insurers has created a difficult start for this year’s cycle.