One of the lesser-known consequences of the Affordable Care Act (ACA) is the consolidation of the insurance market into fewer insurance companies.
As Mercatus Senior Research Fellow and Forbes contributor Brian Blaise writes in a recent piece for Forbes, this has limited the range of choice and competition in the insurance market:
“The ACA has led to significant consolidation among providers through the health care market and is producing a severe adverse selection spiral in many states’ individual health insurance markets…. Now, exchange participation decisions are reportedly being made contingent upon DOJ decisions with respect to corporate mergers.””]
Related: The Truth Behind the Affordable Care Act
This development, combined with the redirection of billions of un-appropriated dollars to failing insurance companies, makes the future of the ACA look dire.
“In May, a federal judge ruled that the Obama administration’s payments to insurers through its cost sharing reduction program are unconstitutional because Congress never appropriated the funding…. These payments likely exceeded $7 billion in 2014 and 2015 combined, and the administration continues to make them. The administration is also diverting billions of dollars in funds in reinsurance program contributions to insurers, funds that are legally required to be deposited in the U.S. treasury.””]
Head over to Forbes to read the whole piece, and find out just how terminal things are looking for the ACA.