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How Is Obamacare Experiencing Market Failure

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The article discusses how Obamacare is experiencing market failure. The textbook states, “We use the term market failure to refer to situations where the market generates imperfect (suboptimal) outcomes” (Schiller, 2016). Obamacare is a form of medical insurance offered through the federal government. “Obamacare also known as the Affordable Care Act, or the ACA is a law enacted to ensure that all Americans have access to affordable health insurance” (Neporent, 2013). The companies that are offering Obamacare, such as UnitedHealth Group Inc. and Aetna Inc., are experiencing great losses on individual plans. Obamacare is failing to bring in profits for these companies; in fact, the companies have decided to stop offering health insurance.
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