At least six healthcare insurers have already announced that they will exit the ACA Marketplaces in plan year 2027: Cigna Health, CareSource, PacificSource, Baylor Scott and White, Providence Health, and Mending (formerly Taro Health). As a result, roughly 650,000 insured individuals across a third of states will need to select new plans next year.
Insurers cited rising costs, declining enrollment, and policy uncertainty as factors behind their decisions. Cigna president and incoming chief executive Brian Evanko indicated that there wa s no “clear path” to scale the company’s ACA business, which has been shrinking in recent years; enrollment in Cigna Marketplace plans dropped 17% compared to the first quarter of 2025.
A spokesperson for PacificSource indicated that rising health care costs have become unsustainable, while Baylor Scott & White pointed to individual marketplace “complexities.” Providence CEO Erik Wexler noted that changes in state and federal regulation have made it increasingly difficult for regional, not-for-profit health plans like Providence to thrive. “Meanwhile, the larger insurance companies have consolidated significantly, giving them the size and resources to operate more efficiently. This has left us in an untenable situation,” said Wexler.
As insurers exit the ACA Marketplaces, consumers are left with fewer choices for coverage. Exits also create uncertainty for insurers that remain in the market, as they have little insight into the risk profile of consumers newly enrolling in their plans.
