The health insurance exchanges attracted new insurers this year, but startups exiting the marketplaces caused the slowest growth in the number of companies offering policies through the system in four years, according to data analyzed by McKinsey & Co.
National insurers expanded the most, sold more policies and reduced premiums for Silver plans this year, the consulting firm reported Tuesday. Blue Cross Blue and Shield companies and insurers with large Medicaid operations such as Centene continue to dominant the exchanges, however. Enrollment rose 13% to 16 million during the open enrollment period for the 2023 plan year.
Premiums rose an average 4% for the lowest-price Silver-level plan, the highest in four years. Insurtechs such as Bright Health Group, Oscar Health and Friday Health Health Plans imposed the biggest rate hikes.