But the fact that companies are dropping out proves that the private health insurance model simply does not work unless they can cherry pick only healthy people to cover. Also keep in mind: not all companies have dropped out. Those with strong networks that act to contain costs, and those with experience insuring sicker people are still in. It shows that there really are two categories of private health insurance companies: those that got lazy by insuring only healthy people before Obamacare, and those that took their mission a little more seriously. Why is there so little criticism directed at the private insurers? They mis-priced their plans at the outset then are shocked, shocked that they lost money. Moda fouled up so badly it was almost taken over by the state of Oregon, and now, sure enough, they've dropped out of everywhere except the Portland area, where, guess what? there is a healthier population. This cries out for more regulation not less.