With only one major insurer left on the federal marketplace following the departure of UnitedHealthcare, Kansas Insurance Commissioner Ken Selzer hopes to attract more insurers to do business in the state.
Blue Cross and Blue Shield of Kansas is the only insurer offering plans on the Affordable Care Act (ACA) marketplace. KCUR-FM reported that Blue Cross is offering multiple plans on the market.
Coventry, another major insurer, pulled out of the market the previous year.
Deputy Commissioner Clark Shultz revealed that the commissioner has been in talks for several months with other insurers about joining Kansas’ marketplace next year.
“It’s too early to announce that and we don’t have it secured, but there are some very positive developments,” remarked Shultz.
Last week, UnitedHealthcare announced that it was withdrawing from the marketplaces of most of the 34 states where it operates. The insurer cited its $475 million losses last year as the reason for its withdrawal.
“They announced they wish they had waited a little bit longer before getting in,” Shultz commented. “I think they got into a lot of markets and sustained some fairly heavy losses and then regretted getting in, so they just decided to change their course.”
While it is difficult to determine the aftereffects of UnitedHealthcare’s exit, Kansas Association for the Medically Underserved ACA consumer education program director Sheldon Weisgrau pointed out that the majority of policyholders on the Kansas marketplace are insured by Blue Cross—about 80% of the 101,555 who enrolled during the open period.
The director said that it is too soon to tell if the state having only one insurer would increase premiums, but shared that he does not think “it’s at all a failure of the marketplace if there’s only one insurance company that’s offering plans.”
“It’s still very early in the game, and this is going to shake out over several years.”
Shultz does not believe that Blue Cross would hike its premiums, calling the insurer a “a very good player.”
“Their rates for 2017 are going to be based on what has happened in the past for them,” the deputy commissioner said. “In other words, I don’t see that, ‘Well, we’re the only player, so now we can hike our rates.’ I don’t think they’ll do that.”
Shultz went on to suggest that if two or more insurers join the marketplace, they might introduce lower premium options—particularly once the Legislature passes a a bill allowing insurance companies to offer plans that only reimburse for in-network care.
