Analysis: Obamacare Insurer Participation Drops 27 Percent Since 2013

The amount of insurance companies participating in Obamacare has declined by more than 25 percent since 2013, according to a new report.

A Heritage Foundation analysis found that 287 insurance companies are doing business on the Obamacare exchange in 2016. Shortly before the Affordable Care Act went into effect three years ago, that number was at 395 — amounting to a 27 percent drop.

Last year, there were 307 health insurance companies offering plans on the exchanges.

The Heritage Foundation data also shows that 22 states plus the District of Columbia have fewer health insurance companies on their exchanges this year compared to last year, as opposed to the 10 states that have more.

Forty-five insurers left state exchanges after 2015 and 25 entered the exchanges, hence the difference of 20 between 2015 and 2016. Of those 45 companies who departed the exchanges, 31 exited voluntarily, according to the Heritage Foundation.

Elsewhere, it was reported Wednesday that health insurance company Highmark Inc. is suing the federal government for nearly $223 million to make up for money it lost as part of the Affordable Care Act program's "risk corridors," which are set in place to limit the risks undertaken by companies taking part in Obamacare marketplaces.

Highmark Health, the insurance provider's parent company, lost $85 million last year from revenue of roughly $17.7 million, and most of those losses came from Obamacare.

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