Insurers are expanding their Affordable Care Act plan offerings for next year as the once-troubled business begins to generate profits, according to The Wall Street Journal.
The overall individual-insurance market has shrunk in recent years. Oscar Insurance Corp. is the latest insurer to announce more growth in 2020. The company will add six new states to its current roster of nine. Many other insurance agencies are also expanding to other states.
Sharp rate hikes by the insurers have helped to offset increased costs. Premium increases in 2020 appear to be more moderate and not as high as recent past years.
Enrollment in plans sold through the Affordable Care Act’s marketplace was around 10.6 million, the same was in the first quarter. The number of people without individual insurance has also dropped in recent years to 13.7 million.
Geoff Bartsh, a vice president at nonprofit insurer Medica, said, “It’s a good news/bad news situation. The broader individual market continues to have a lot of problems, and that’s shown by the number of people who are leaving.”