Arizona health insurance markets continue to shrink

Some of the state’s largest insurers are leaving the marketplace due to “unsustainable losses,” leaving consumers with even fewer choices

Insurance News

By Lyle Adriano

Arizona is the next state to lose a number of its major insurers on the state health insurance exchange, with UnitedHealthcare and Blue Cross Blue Shield of Arizona announcing their intent to exit the Affordable Care Act (ACA) market 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,” remarked UnitedHealth Group CEO Stephen Hemsley in a conference call. “Next year, we will remain in only a handful of states, and we will not carry financial exposure from exchanges into 2017.”

 “[The losses are] not really something that are sustainable,” said Blue Cross Blue Shield senior vice president of strategy Jeff Stelnik. “We have to look county by county and make sure it makes sense to offer a product going forward.”

Blue Cross Blue Shield stated that it would evaluate all its options, and would look into discontinuing marketplace plans in some counties effective next year.

The exit of both insurers could leave policyholders, particularly those in rural counties, without access to subsidized health insurance.

Blue Cross Blue Shield and UnitedHealthcare are the only insurers eight counties in Arizona can choose from, reported the Arizona Capitol Times.

Both insurers have until May 11 to file their proposals to exit the marketplace, the state Department of Insurance said.
 

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