Aetna’s decision to withdraw, in 2017, from 11 of the 15 states where it is currently offering plans on the Affordable Care Act’s exchanges is another clear signal, coming as it does in the wake of many other insurer withdrawals, that the insurance marketplaces are financially unstable. Because of unworkable federal rules, the exchanges are increasingly unable to offer a choice of attractive, affordable health plans.
There is nothing inherently wrong with a mechanism for facilitating consumer choice in health insurance that would doom it to failure. Numerous private sector businesses have developed web-based tools to aid consumers in making choices from a wide array of products, including health insurance. By simplifying the range of options and making comparisons easier, such businesses attract millions of consumers who want to be better informed about the choices available in the market.
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