With regard to theAffordable Care Act’s Health Insurance Marketplace, it all comes down to options. As major carriers take umbrage with various aspects of the ACA and its Marketplace, many are pulling out of the Marketplace in various parts of the country, leaving residents—especially in rural areas—with minimal options for coverage. However, there’s hope as newer insurers are joining the Marketplace, bringing a renewed competition.
Earlier this year, UnitedHealth announced a possible ACA withdrawal come 2017, as they reported a significant loss in 2015. Their opting out of rural areas in states such as Arkansas produced some concerns, especially in areas where there is minimal competition among insurance companies. Other insurance companies like Humana are limiting the scope of coverage in many areas. However, while some companies are subtracting their reach, many are adding. BusinessInsurance.com reports that companies like Aetna and Medical are moving to sell individual plans in areas like Kansas for the coming year, as well as Blue Cross and Blue Shield of Kansas and Blue Cross and Blue Shield of Kansas City. In Iowa, Wellmark Blue Cross and Blue Shield will enter the Marketplace for 2017, with newbie Bright Health Inc. arriving in Colorado and Canopy Health Insurance coming to Nevada and Wyoming—all in 2017.
While there’s a five-year ban on re-entry for anyone who exits the individual Marketplace, it’s clear that many newer and smaller agencies are planning an entrance strategy with no signs of an exit. Should these insurers have positive results within these concentrated markets, there is no telling how far they will expand. Perhaps the big guys aren’t as necessary after all.
