The insurance companies are pulling out of ACA as they are losing lots of money. Don't blame them [View all]

[hill2016]

for raising premiums.

http://www.wsj.com/articles/insurers-losses-deepened-on-aca-plans-in-2015-1463356176

Many insurers have lost money on the Affordable Care Act plans they sell to consumers. A new analysis shows how much those losses deepened in 2015, the second year of the law’s signature exchanges.

https://www.washingtonpost.com/news/wonk/wp/2016/04/19/unitedhealth-group-to-exit-obamacare-exchanges-in-all-but-a-handful-of-states/

UnitedHealth Group, the nation's largest health insurer, said Tuesday that in 2017 it will exit most of the 34 states where it offers plans on the Affordable Care Act insurance exchanges.

Ultimately it boils down to:
(1) young healthy millennials are not signing up enough to offset the sicker older patients
(2) lots of people are gaming the system (paying premiums only when they need treatment, stopping after) and abusing the life events.
(3) Medical costs of those who use medical treatments have been higher than expected


At the end of the day, premiums collected have to cover medical costs incurred. Hence either (1) premiums increase on everybody (2) more people pay in (restricting enrollment outside the open enrollment period, increasing the tax/penalty) (3) more cost-shifting to those who are using medical treatments (deductibles, co-pays, coinsurance etc.).

This is maths and reality.