A new analysis on the Affordable Care Act is predicting some bad news. One of President Obama’s accomplishment is failing to attract competition to the exchange market, according to Avalere.
The healthcare consulting firm claims that by 2017 36% of the exchange market regions may have only one insurance provider offering plans, and it is possible that some sub regions will have no plans available at all. About 55% of the exchange market could have two insurance providing carriers competing against each other.
Avalere claims that this luck of competitive motivation is a direct result of financial losses for the health insurance companies. The analysis compared insurance providers that offered various plans in 2016 to those that announced that they will be scaling back participation in the exchange market.
The analysis is assuming that no new plans will be introduced among the insurance providers. If this assumption proves to be false, it is still possible that consumers will have a decent choice of plans to choose from.
Despite the negative analysis the impact of the Affordable Care Act cannot be denied. Since the act has become law, about 20 million Americans got health insurance from the marketplace. Several recent studies suggested that Americans have less medical debt, do not postpone crucial treatment because of financial concerns, and are more likely to receive preventive care service like vaccines on regular basis.