Mary:  I’m Mary Walden with economist MW, welcoming you to the economic perspective.  Today’s program looks at problems with the Affordable Act.  Mike, recently a major insurer in North Carolina announced they were examining whether to continue participating in the Affordable Care Act.  The Act – also known as Obamacare – was enacted to expand health insurance coverage to millions of households who previously did not have coverage.  Why would any insurer decide not to participate?

Mike:  Summary Answer

1. Some insurers have left
2. Reason – some insurers have evaluated that costs associated with ACA are greater than the revenues
3. Two issues
4. One – ACA had hoped to contain costs – especially by motivating participants who used high cost emergency rooms to use regular doctors
5. Some studies show this isn’t happening to the degree expected – and so costs to insurers aren’t being contained as much as thought
6. Second – need young healthy individuals to participate so their revenues will help offset the higher costs of older participants
7. Some data indicate that signing up 26-35 aged individuals (near young) has not met expectations
8. Bottom line – finances will determine if an insurer stays
9. I’m MW