Currently Viewing:
Newsroom
Currently Reading
How New Entrants Fare in the Insurance Exchanges
September 19, 2015 – AJMC Staff
Health Benefit Cost Growth Expected to Slow in 2016
September 17, 2015 – Laura Joszt
The Cost Conundrum in Cancer Care
September 17, 2015 – Surabhi Dangi-Garimella, PhD
$500 Million in ACA Funding Awarded to Health Centers for Primary Care
September 15, 2015 – AJMC Staff
Care Access, Centers of Excellence, and the ACA: Expert Interchange at the NCCN Policy Summit
September 14, 2015 – Surabhi Dangi-Garimella, PhD
Insurance Increases Diagnosis and Control of Chronic Conditions
September 13, 2015 – Laura Joszt
This Week in Managed Care: September 12, 2015
September 12, 2015
Bernie Sanders Takes Aim at Prescription Drug Costs
September 12, 2015 – Laura Joszt
New Medicare Advantage Entrants Increase Consumer Options
September 11, 2015 – AJMC Staff

How New Entrants Fare in the Insurance Exchanges

AJMC Staff
An analysis of the competitive landscape of the public health insurance exchanges as it has so far unfolded has revealed that despite challenges to date, the exchanges have been attracting new entrants.
An analysis by McKinsey & Company of the competitive landscape of the public health insurance exchanges as it has so far unfolded has revealed that despite challenges to date, the exchanges have been attracting new entrants.

In the 2014 open enrollment period, one-fourth of the carriers offering plans were new entrants—meaning they had no individual insurance experience in states they were entering or no insurance experience at all. Just 4 new entrants did not re-file for 2015. Then in 2015, 28% of carriers were new to their state’s individual insurance market. Preliminary evidence suggests the 2016 open enrollment period will be similar to 2015.

Factors like lowered barriers to entry and the presence of the individual mandate and premium and cost-sharing subsidies likely increasing the number of covered lives have made the exchanges an attractive opportunity for new entrants, according to McKinsey.

However, the analysis points out that it is still too early to tell if the competitiveness of the new entrants will be sustainable.

“Overall, it is clear that the trend toward increased competition on exchanges is continuing,” according to the analysis. “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.”

Read the full piece: http://bit.ly/1KqSbqI

 
Copyright AJMC 2006-2020 Clinical Care Targeted Communications Group, LLC. All Rights Reserved.
x
Welcome the the new and improved AJMC.com, the premier managed market network. Tell us about yourself so that we can serve you better.
Sign Up