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Carriers Face Tough Post-ACA Market

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Players in the U.S. health insurance industry are expected to suffer from narrowed operating margins for the next few years due to the Affordable Care Act (ACA). The operating environment has become so tough that some health plans, especially smaller ones, may be forced to exit the market. Players are facing high regulatory compliance costs, increased taxes and fees, pricing pressure, rising medical costs, stiff competition and general marketplace uncertainty, according to an analysis by Zachs Equity Research.