Anthem said Wednesday it might pull back from the Obamacare marketplaces if changes aren’t made to make them a better deal for health insurers.
Anthem CEO Joe Swedish said on a Wednesday morning earnings call that for the company to maintain its current participation in the marketplaces created under President Obama’s healthcare law, improvements would need to be made.
“We believe that we must see adjustments such that we can easily map to a 2018 situation of sustainability in this marketplace, and quite frankly given what may or may not happen, we’ll be evaluating the regional engagement across our markets moving into 2018,” Swedish said.
Other major insurers including UnitedHealthcare, Aetna and Humana already have reduced their participation in the marketplaces, citing heavy losses from sicker-than-expected enrollees.
Anthem, which is a subsidiary of Blue Cross Blue Shield, is selling Obamacare plans in 14 states for the 2017 enrollment season, which began Tuesday.
Swedish mentioned a number of changes that the White House or Congress could make to the marketplaces that would make them a more attractive place for Anthem to sell. Those changes could include repealing or delaying the Affordable Care Act’s health insurance tax, changing the risk adjustment program, which transfers money to insurers with bigger losses, and tightening special enrollment periods.
The marketplaces have been under heavy political fire from Republicans, as insurers have reduced their marketplace offerings or withdrawn altogether. Even Democrats have acknowledged changes are needed to keep the marketplace viable in the future, as insurers have pulled out, premiums are soaring, and consumers are facing fewer options. Much of their success will depend on whether more young, healthy people sign up during the current enrollment period.
