Analysts Say Guaranteed Subsidy Payments Not Always Linked to Financial Success for Health Insurers

Insurers likely are drawn to participate in exchange markets in states with large numbers of individuals receiving federal subsidies under the Affordable Care Act, but the guaranteed subsidy payments might not always lead to financial success for the companies. Analysts have said insurers are attracted to participate in such states' exchange markets because of their large customer bases and the promise of more paying customers.

• "Premium Subsidies Flow Heavily to Populous, Poor States" (Herman, Modern Healthcare, 9/15).