Scott and White health plan to drop Obamacare offerings in 2017

Scott & White Health Plan, an insurance program run by the Dallas-based Baylor Scott & White Health system, said Wednesday that in 2017, it will exit the federal health care marketplace established under the Affordable Care Act.

The announcement follows Aetna's decision to stop selling plans on the marketplace announced Tuesday. Scott & White Health said the decision was made before they became aware of United Health Care and Aetna's decisions.

"Fundamental flaws in the risk adjustment program, high morbidity rate, and higher illness rate of the member pool also contributed to problems," the insurer said in a statement. "It was projected that the pool would have balanced risk population, but this hasn't happened." The company said added that it also plans to refine other plans it offers, "to reflect the changing market."

The health insurance marketplace established under the Affordable Care Act was meant to give more Americans access to affordable health coverage and reduce rising health spending. It aimed to prevent individuals from being denied coverage due to preexisting conditions and from being charged unaffordable rates.

Read more: http://www.dallasnews.com/business/health-care/20160817-scott-and-white-health-plan-to-drop-obamacare-offerings-in-2017.ece