US insurers lose $300 million from ACA’s health law coverage losses
Insurers lost $300m in the second quarter of the Affordable Care Act, the second-largest loss of their kind, according to the American Association of Insurance Commissioners.
The loss was more than double the $200m in profits insurers reported in the first quarter.
The association attributed it to the ACA’s lack of coverage of pre-existing conditions and to the government shutdown and other issues.ACA premiums have fallen for three straight quarters.
The ACA is supposed to lower premiums, but it has failed to do so in the short term.
The ACA’s individual mandate and other requirements have driven down premiums, forcing insurers to cut benefits and charge higher rates.
The result has been a sharp drop in overall insurance coverage for most Americans, and a drop in profits for insurers.
The second-quarter loss is the second largest since the ACA began operating in 2014.
The first-quarter one was $150m.