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

[Xolodno]

41. Not surprised.

Many Health Insurance companies are not equipped for offering public coverage. Their rating algorithms, business models, etc. are set up for company based insurance plans.

They can raise premiums and price themselves out of the market, and hence still lose money. Or just recognize they can't compete in a state due to a number of reasons such as low uptake, low population, not equipped to handle "public coverage", etc.

If they were allowed to spread the loss costs over a region or nationally they probably could turn a profit. Such as many property and casualty companies aren't opposed to covering wind related losses in Texas, Louisiana, Florida, etc. along the coast if they are allowed to spread those costs across all states that would be affected. But they can't because those states have regulated that an insurance company cannot raise premiums because of losses in another state, or; if they can, can only do so marginally.

Would make perfect economic sense to eliminate those laws and could ease the burden of high premiums people face. But say a politician states "why should our insurance rates rise in Houston for a hurricane in Miami! We haven't had a hurricane here in X number years." While ignoring that the actuaries do take that into account.