Obamacare exchanges are more competitive in their second year, but they still fall far behind the private insurance market before the health-care law took them over, according to an analysis from the Heritage Foundation.
After a number of insurers declined to participate in Obamacare exchanges during the first, riskiest year of their operation, the Obama administration made much of the increase in insurers for the second open enrollment period. Ahead of year two, 77 more insurers joined Obamacare exchanges across the country, a 25 percent boost in participating companies.
But that still leaves the public exchanges far behind the pre-reform individual insurance market, according to Heritage. The Obamacare market is 21.5 percent less competitive than the individual insurance market was in 2013, the year before Obamacare regulations hit and exchanges opened, when the number of insurance carriers in all 50 states are considered.
That’s better than the first year of the health-care law. At Obamacare’s launch, the exchanges were 36 percent less competitive than the 2013 market, according to a similar analysis Heritage ran in 2014.