Anthem is planning to exit Obamacare exchanges in 16 of 19 regions in the state of California, Reuters reported.
This means that the large health insurer will only offer coverage in three regions, which leaves roughly 153,000 customers without any Anthem option on the Obamacare exchanges.
The insurer cited uncertainty and a lack of predictability as a reason for exiting the exchanges.
"The market for these plans has become unstable," said Brian Ternan, president of the company. "And with federal rules and guidance changing, it's no longer possible for us to offer some of those plans."
According to Covered California, average premium rate increases will go up by 13.4 percent in Los Angeles, KPCC reported.
"The rate release comes amid what Covered California Executive Director Peter Lee calls ‘unprecedented uncertainty’ from the federal government over the future of the Affordable Care Act," the article states. "In response to that uncertainty, Anthem Blue Cross of California will no longer do business on the individual market in Southern California."