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Kaiser Foundation Analysis Shows Individual Insurance Market Is Stabilizing

January 08, 2018

The Kaiser Family Foundation recently released an analysis of the individual insurance market through third quarter 2017. The analysis suggests that individual insurance market financial performance has improved.

Kaiser found that:

  • While the individual insurance market financial performance struggled in 2014 and 2015 following the establishment of the health insurance marketplace, improvements during 2016 have continued through 2017
  • Insurers have been regaining profitability in the individual insurance market
  • Medical loss ratios began declining during 2016, suggesting improved health plan financial performance

Kaiser suggests that health plans are returning to pre-ACA performance levels after the initial uncertainty following the implementation of the Affordable Care Act (ACA). Kaiser notes that premium increases during 2017, coupled with a slower growth in claims for medical expenses, contributed to the stable financial performance.

The loss of payments to health insurers for cost-sharing subsidies during October 2017 is likely to affect health insurer profitability in the individual insurance market for 2017.

Further, Kaiser cautions that the continued political and policy turmoil and the repeal of the individual mandate in the tax legislation may create uncertainty in the individual health insurance market.

Pennsylvania saw a drop off in ACA enrollment, falling below 400,000. HAP and Pennsylvania hospitals and health systems continue to support health insurance coverage for all Pennsylvanians. HAP’s website provides resources on the impact of the ACA in Pennsylvania.

For more information about health insurance analyses, please contact Phillip M. Burrell, HAP’s director, research and data analytics.

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