Latest ACA Extensions Add To Insurers' Financial Fears

Law360, New York (March 6, 2014, 7:59 PM EST) -- Health insurers face fresh uncertainty about the profitability of policies sold in Affordable Care Act marketplaces after the Obama administration this week allowed renewals of noncompliant coverage for two extra years, but newly rejiggered financial backstops should guard against heavy losses, experts say.

The worry for insurers is that healthier people will be more likely to stick with old plans that were cheaper but had fewer benefits, while sicker clients pour into the marketplaces, racking up expenses that aren’t offset by the premiums of the fittest...
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