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Humana to Leave “Substantially All” ACA Markets

After a year of nearly $1 billion in losses, Humana announced on July 21 that it is eliminating its Affordable Care Act plans in all but a handful of states...
July 27, 2016

Humana

After a year of nearly $1 billion in losses, Humana announced on July 21 that it is eliminating its Affordable Care Act (ACA) plans in all but a handful of states. Humana said it would participate in "no more" that 11 state health insurance marketplaces, compared with 19 states in 2016. Humana said the changes will enable it to “retain a viable product for individual consumers and address persistent risk selection challenges.” UnitedHealth Group said earlier this year that financial losses were prompting it to withdraw from most ACA marketplaces.


Meanwhile, a new analysis by Brookings Institution researchers indicates that average premiums in the individual market actually declined significantly upon implementation of the ACA, even as consumers obtained better coverage. Even if premiums rise by 10 percent or 15 percent overall, as some are predicting for 2017, they will be considerably lower than premiums otherwise would have been in the absence of the ACA. This analysis did not take into account the effects of premium and cost-sharing subsidies, which make ACA marketplace plans even more affordable for many people.

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