Anthem Inc. is withdrawing its participation from 16 out of 19 pricing regions for California's Affordable Care Act market, the company announced in a press release.
The company cited uncertainty regarding cost-sharing reductions, the "deterioration" of the individual market and the restoration of taxes on insured coverage as factors in its decision.
That uncertainty has "led to an increasing overall lack of predictability that simply does not provide a sustainable path forward to providing affordable plan choices for all California consumers," the company wrote.
In the company's second-quarter earnings call, Anthem Chairman, President and CEO Joseph Swedish warned that the company would pull out of more marketplaces if the subsidies are not funded.
The company will remain in 28 counties that make up most of Northern California. The decision does not affect those who have employer-provided insurance, Medicare Advantage, Medicare Supplement, Medi-Cal or those enrolled in grandfathered plans, or plans purchased before March 2010.