“The beginning of the end for insurers”
All the “insurers” in Massachusetts gone under?
Insurance companies have an underwriter. The underwriter is sometimes in another state or even another insurance company. The underwriter is like a big pool that pays out claims.
Think State Farm, they are huge. They can offset losses in one location (state) by profits from another location.
So to answer your question, no. You would not see insurance companies folding unless they are based only in Mass and their only product line is health insurance.
With ACA(sarc) all insurance companies will be affected. They will not go under because most insurance companies have other product lines, auto, property, liability, life, etc. Health insurance is not a big money maker as the claims eat into their profit margins.
What you may see is companies dropping health insurance from their product lines. I think The Principal has already done so.