From the Desk of Bob McNett….
Individual Health Market / Exchange Market to Undergo Big Changes for 2016.
Three insurance companies have dropped out of the Oklahoma Exchange going into 2016, one is staying the course but with a different approach, and one national carrier is introducing itself into the market.
I recently attended a Blue Cross / Blue Shield meeting where their future strategy in the individual and exchange marketplaces was discussed.
CommunityCare, Global Health and Time / Assurant have announced that they will no longer offer insurance on the Oklahoma Exchange in 2016. Time / Assurant is exiting the health insurance market nationwide. All these carriers announced that further participation in the exchange would not be financially viable for them.
Blue Cross / Blue Shield of Oklahoma will stay on the exchange for 2016, but will no longer be offering their Blue Choice network, which included virtually all hospitals and doctors across the state. Blue Preferred, a more limited network, will still be offered. However, word is that Saint Francis hospital and their associated physicians will now be available on the Advantage network. However, at this writing it looks like Saint John will not be available on any Blue Cross individual network.
Blue Cross employer-sponsored group health plans, however, will offer the same or similar networks as are currently offered.
One new nationwide carrier, United Healthcare, will be a new offering on the Oklahoma Exchange this year.
Blue Cross, during the first two years operating within the Oklahoma Exchange, lost a lot of money (no announcement of how much) as incurred claims greatly exceeded premiums collected. Therefore, substantial increases are expected, which may be countered somewhat by the new, more limited provider networks and plan designs.
Early promises of the Affordable Care Act that this law would actually lower premiums for consumers have now fallen flat.
We should have more information in the next couple of weeks, as open enrollment for 2016 is scheduled to begin November 1.
Robert K. McNett, LUTCF
The McNett Agency
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