Some good news and some bad news on the Affordable Care Act’s marketplace.
ConnectiCare Re-Commits to Marketplace
Nearly 50,000 beneficiaries are breathing a sigh of relief as ConnectiCare reverses its decision to leave the state marketplace in 2017.
Despite having their revised rate increase denied by a court the week before, ConnectiCare announced on September 13 that they would remain in the health care marketplace for 2017. They also decided to drop the appeal of their rate rejection.
After being granted the 17.4 percent rate hike they originally requested from the state, ConnectiCare re-applied for a larger 27.1 percent rate increase three weeks later. Company officials said their original request would not be enough to cover claims and make a profit.
Although finances will likely still be an issue, it seems ConnectiCare has reordered their priorities. According to CEO Michael Wise, the company reversed their decision “after hearing from state officials, providers, and beneficiaries about the importance of our plan to Connecticut.”
Had ConnectiCare discontinued marketplace coverage, the state’s residents would have lost their biggest on-exchange health insurer and been left with only Anthem for 2017.
New Jersey Loses CO-OP
A New Jersey CO-OP recently announced that they will no longer be offering on-exchange coverage to their 35,000 beneficiaries in 2017. Health Republic Insurance of New Jersey’s decision also affects a number of small employers who will need to find new coverage to offer their employees next year.
The nonprofit CO-OP will continue to serve members through the end of 2016. State insurers are working to ensure providers are still reimbursed for any care they give Health Republic members through the end of the year.
Remaining Options in NJ
Two carriers will continue offering on-exchange coverage in 2017 – Horizon Blue Cross Blue Shield of New Jersey and AmeriHealth. The two companies insure more than 80 percent of the state’s individual enrollees.