Implementation of the Affordable Care Act has triggered significant change in the health insurance markets — some of which was expected by insurers, and some unanticipated, according to a new study by Hartford-based Conning Inc.
Health insurers continue to assess and respond to the changing landscape through the ACA implementation, dealing with challenges and pursuing opportunities, said Terence Martin, a director in insurance research at the investment management company for the global insurance industry.
“The structural changes brought about by this complex act created significant temporary market dislocation, and spurred large-scale acquisition announcements,” Martin said in a news release. “The objective of reducing the number of uninsured was accomplished at least in part, creating growth opportunities for insurers. However, many of the insurers that pursued the new individual exchange market are reporting significant losses there, prompting rate increases and causing insurers to question ongoing participation in selected state markets.”
The Conning study, “Health Insurance in the ACA Environment: A Study of Contrasts,” reviews the act’s impacts on insurers, products, and consumers. It analyzes insurer financial results and competitive conditions, and presents the opportunities that insurers may find in this post-ACA environment.
Insurers have responded to the new environment in various ways, Steve Webersen, head of insurance research at Conning, said in the release.
“After many insurers spent significant resources preparing for the launch of the individual market exchanges, the industry focus has turned to scale, leading to the mega-merger announcements of last year,” he said. “Insurers will refine their strategies around both individual and group comprehensive as the dust settles from the ACA implementation, and Medicaid specialist firms will ride the growth and positive performance of their new enrollees.”
