Major healthcare insurer Anthem will only offer Obamacare exchange plans in roughly half of Kentucky's 120 counties due to mounting policy uncertainty from Washington and a deteriorating market.

Anthem had earlier planned to offer individual market plans in every county in Kentucky. However, the insurer said that lingering problems with the market and massive federal uncertainty has forced its hand.

It plans to offer individual market plans on and off Obamacare's exchange in only 59 counties out of the 120 in the state. The individual market is used by people that do not have a plan through their job or the government and includes Obamacare's marketplaces.

Anthem said in a statement there has been "continual changes and uncertainty in federal operations, rules and guidance."

Chief among the uncertainty is the fate of subsidies to insurers to reimburse them for lowering co-pays and deductibles for low-income Obamacare customers.

Anthem also highlighted the restoration of taxes on health insurers.

Another key factor was "a shrinking and deteriorating individual market."

Obamacare has seen higher premiums in recent years due to a sicker-than-expected enrollee population. Independent estimates also show that if the insurer subsidies aren't funded next year then premiums can go up an additional 19 percent.

President Trump could decide to make the payments for 2018 and has been making them month-to-month. However, he has declined to make that commitment and now Congress is exploring funding them.

Anthem said that it is pleased with some of the steps that the federal government has taken to shore up the individual market, but cautioned that it still remains "volatile."