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Health Insurers Struggle to Offset New Costs

Posted by Steve Schram on May 06, 2016 at 10:23 AM

Originally published on May 4, 2016 on the Wall Street Journal by Louise Radnofsky and Anna Wilde Mathews

Insurers have begun to propose big premium increases for coverage next year under the 2010 health law, as some struggle to make money in a market where their costs have soared.

The companies also have detailed the challenges in their Affordable Care Act business in a round of earnings releases, the most recent of which came on Wednesday when HumanaInc. said it made a slim profit on individual plans in the first quarter, not including some administrative costs, but still expects a loss for the full year. The Louisville, Ky.-based insurer created a special reserve fund at the end of last year to account for some expected losses on its individual plans in 2016.

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