Report shows ACA marketplaces experienced most profitable first quarter yet

According to a new analysis by the Kaiser Family Foundation, health insurers who participated in the Affordable Care Act marketplace earned an average of $300 per member in the first part of 2017.

This figure is more than double than this time period for the previous three years.

The figures presented to do not account for administrative costs, however, the increases still show that the marketplaces are becoming more profitable for private companies selling plans on the exchanges.

According to Cynthia Cox, a researcher at the Kaiser Family Foundation who worked on the analysis, the current profitability seems to come from increased premiums and steady cost which also suggests the markets are becoming more stable.

These increases were partially due to insurance companies underestimating the cost to cover people in the marketplace, many were sicker than expected and seeking insurance. Additionally, costs have been stable over the past few years, indicating that healthy people were not driven out of the marketplace. Insurers have set premiums high enough for them to profit but not so high that healthier customers left the market, allowing the market to achieve stability.

Source: Kaiser Family Foundation