Herman Cain describes the problem:

First of all, all those new customers? As the insurers have discovered to their horror, far too many are sicker than the norm, which means the insurers are having to lay out far more money in care costs than they’re collecting in new premiums. So no, while the individual mandate is bringing them new customers, the new business is not profitable for them. Then there’s the matter of the risk corridor. Remember the original idea? If anyone loses money, a pool from the profits of the other insurers can be tapped to cover the losses. But what do you do if just about everyone is losing money? What do you do if the losses are so steep and the profits are so scarce that there’s not enough money in the pool to cover the losses? That’s exactly where we stand right now.

Blue Cross Blue Shield is pulling out of Nebraska:

The decision by Blue Cross Blue Shield of Nebraska to leave the Affordable Care Act’s individual insurance marketplace may awaken officials to the need for change, the head of the state’s largest health insurer said Friday. If not, said Blue Cross CEO Steve Martin, there’s no end in sight for the losses that he said forced the Omaha-based insurance company to remove itself from the exchange for 2017, only hours before the deadline to stay or leave. Although Blue Cross’ individual exchange policies cover only about 20,000 of its 750,000 customers, those policies have lost $140 million since 2014. If Blue Cross remained in the market, it estimated that the loss could reach $250 million by the end of 2017. “We cannot take another hit,” Martin said.

They are exiting the big markets in Tennessee too.

They cannot raise rates enough because as they raise them, even more healthy people will leave, and the pool will become even more sickly and costly to provide care for. They are at the point where no matter what they do, costs will always outpace revenues. This is the application of an r-mindset with an r-perception of resource availability to a world that only has a K-level of resources. It is destined to failure.

It is an amazing time, because the whole thing is going down. How often do you see the entire healthcare system of the most powerful nation on earth collapse, due solely to leftist stupidity and inability to comprehend reality?

It is almost incomprehensible.