One of the most prominent Obamacare insurance companies that is shutting down has announced it will no longer offer coverage for Americans with pre-existing conditions, saying that the marketplaces have reached their capacity.
Alliance United Insurance Co., which has more than 70,000 members nationwide, said it would stop covering patients with pre, post-existing health conditions.
The decision comes as the insurance industry is preparing for a wave of cancellations of policies as the government moves to phase out subsidies that have helped millions of Americans sign up for coverage.
It is unclear whether the move will have a significant impact on the insurer’s business, but the decision may put more pressure on the company, which has seen a surge in new business after the rollout of the exchanges.
The announcement from Alliance United comes a day after Anthem announced it would shut down its Obamacare business.
Anthem has said it will not be covering consumers with pre or post-concussive injuries, heart attacks or strokes.
Anthem is also moving to cut off its business relationship with HealthCare.gov.