Things could get really bad for Obamacare.
According to analysts at the elite investment bank Jeffries, Anthem is likely to exit a large amount of Obamacare’s individual insurance markets for 2018. Such a withdrawal would have devastating consequences for the program.
Anthem currently offers insurance under the Blue Cross and Blue Shield brand in 14 states and remains one of the only large companies that still offers coverage through the Affordable Care Act. UnitedHealth Group and Aetna already left most state exchanges, with Humana saying it plans to stop offering any individual ACA plans by 2018.
An Anthem exit would spell disaster for consumers in parts of Colorado, Kentucky, Missouri and Ohio. These states could potentially have no insurers in the Obamacare exchanges.
Following Congress’s embarrassing failure to pass an ACA replacement, President Trump tweeted out on March 13: “ObamaCare is imploding. It is a disaster and 2017 will be the worst year yet, by far! Republicans will come together and save the day.” Some writers argued the president was overreacting to structural issues within the new entitlement program.
The Jeffries report also said Anthem forecasts significant premium increases in 2018.
“If we can’t see stability going into 2018 with respect to either pricing, product or the overall rules of engagement, then we will begin making some very conscious decisions with respect to extracting ourselves,” said Anthem Chief Executive Officer Joe Swedish earlier this year.