Many new entrants have jumped into the individual health insurance market under the Affordable Care Act, encouraged by the opening of federal and state marketplaces, the individual mandate and premium subsidies, according to a report by McKinsey & Company.
After accounting for the entrances and exits of both new companies and those already in the market, 333 insurance carriers competed on the 2015 health insurance exchanges, according to a report put together by the consulting firm. Those numbers included many new carriers, with some 28 percent new to their state’s individual insurance market, according to the report.
The 2016 open enrollment period for the exhanges will be much like the 2015 market based on preliminary evidence from 41 states, the report concludes. “Overall, it is clear that the trend toward increased competition on exchanges is continuing. Yet, it is too early to tell how new entrants will fare in the long run, as the market continues to be quite dynamic for all participants,” it states. Read full article here