What Does the Failure of Some Co-ops and the Possible Pullout of United Healthcare Mean for the Affordable Care Act?

Brief

What Does the Failure of Some Co-ops and the Possible Pullout of United Healthcare Mean for the Affordable Care Act?

Abstract

The failures of several co-ops and United Healthcare’s announcement that it is considering withdrawing from many or all Marketplaces in 2017 have raised some concerns. However, the Marketplace experiences of co-ops and United Healthcare indicate that they have not been major players in many areas, and their exits will not be overly disruptive. Blue Cross Blue Shield insurers, Medicaid insurers, and provider-sponsored insurers are more frequently driving Marketplace competition. We conclude that the recent revelations regarding United Healthcare and the co-ops are not significant threats to the Marketplaces and the ACA in general.

Research Area: 

Centers

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