The Kaiser Family Foundation analyzed recently released first-quarter financial data for insurers selling in the individual market under the ACA.
For the analysis, KFF used data insurers reported to the National Association of Insurance Commissioners and compiled by Mark Farrah Associates. The analysis includes data from the first quarter of 2011 through the first quarter of 2017 as well as various types of coverage, such as coverage purchased through the ACA's exchange marketplaces, ACA-compliant plans sold outside the marketplaces and individual plans originally purchased prior to the ACA.
Here are four things to know about insurers' financial performance, as reported in the analysis.
1. The average first-quarter individual market loss ratio, which KFF defines as "the share of health premiums paid out as claims," was 75 percent for 2017. This compares to 86 percent in the first quarter of 2016 and 88 percent in the first quarter of 2015.
2. The average gross margin per member per month, which KFF defines as "the average amount by which premium income exceeds claims costs per enrollee in a given month," was $99.43 in the first quarter of 2017. This compares to $48.13 in the first quarter of 2016 and $36.09 in the first quarter of 2015. KFF notes first-quarter margins "generally look more favorable as enrollees are still paying toward their deductibles in the early part of the year, lowering claims costs for insurers."
3. The average first-quarter individual market monthly premiums per person went from $337 in 2016 to $403 in 2017. The average first-quarter individual market monthly claims per person went from $288 to $303 during that same time period.
4. The average first-quarter individual market monthly hospital patient days per 1,000 enrollees was 24.7 in 2017, not far from the 23.8 in 2016 and the 25.3 in 2015.
Read the full analysis here.