United HealthCare bowing out of Connecticut health insurance exchange BY KEVIN ZIMMERMAN kzimmerman@westfairinc.com
U
nited Healthcare’s (UHC) announcement that it will exit Connecticut’s health insurance exchange may not necessarily adversely affect very many residents, but it may represent the first step in a major overhaul of Obamacare. UHC — the insurance wing of UnitedHealth Group, the largest writer of coverage in the U.S. — said in its quarterly earnings release on April 19 that it plans to withdraw from almost all Affordable Care Act state exchanges, including Connecticut’s Access Health CT (AHCT), by 2017. “The smaller overall market size and shorter-term higher risk profile within this market segment continue to suggest we cannot broadly serve it on an effective and sustained basis,” said United CEO Stephen Hemsley during the company’s quarterly earnings conference call.
“I THINK YOU’LL SEE OTHER CARRIERS GET OUT. BUT EVEN IF THEY STAY IN, WHAT DOES IT MEAN? AT WHAT PRICE TO CONSUMERS? THEY COULD RAISE RATES BY 25 TO 30 PERCENT.”
from the exchanges in Arkansas, Georgia and Michigan, and on April 15 it informed the Tennessee Department of Commerce and Insurance of its withdrawal from that state’s exchange. The company has since confirmed TWB that it is also leaving Alabama, Colorado, Grant Louisiana, Maryland, Missouri, Nebraska, WCBJ North Carolina, Oklahoma, Pennsylvania, 7.375” x 7.125” h Texas andwWashington. 4-4-16 “We do not have an update on New York at this time,” said UHC spokeswoman Maria Gordon-Shydlo. Connecticut officials moved quickly to reassure residents that they will not be left
out in the cold. In a statement, Lt. Governor Nancy Wyman, who also serves as chair of the AHCT board, said, “Health care exchanges throughout the country are impacted by United Healthcare’s decision, so first and foremost, we want to assure Connecticut customers that their health benefits remain unchanged through the end of the year. “We are confident that in the next open enrollment, all of our consumers will continue to find the health care plans that best meet their needs,” she continued. “State exchanges will have some fluctuation, but AHCT will continue to meet the needs of
Connecticut residents.” Added AHCT CEO Jim Wadleigh: “Be assured that the team at Access Health CT is dedicated to making this transition as smooth as possible as their customers reenter the marketplace in 2017. We will reach out to the consumers who auto-renew and help them choose a new plan. The Affordable Care Act creates a dynamic marketplace, which is exactly what we want for consumers.” The three other carriers that sell plans through AHCT — Anthem Blue Cross and Blue Shield, ConnectiCare, and HealthyCT — have » UNITED, page 30
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“Next year we will remain in only a handful of states, and we will not carry financial exposure from exchanges into 2017. We continue to remain an advocate for more stable and sustainable approaches to serving this market and those who rely on it for their care.” In January, UHC said it had lost approximately $475 million on ACA-compliant plans in 2015 and expected to lose more than $500 million this year, hinting at that time that it might begin pulling out of state exchanges. Which states will be among Hemsley’s remaining “handful” is unclear at the moment. United had earlier announced it would exit
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APRIL 25, 2016
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