Insurers Pull Out of Exchanges Limiting Health Advisors and Clients' Options

Aetna has become the latest health insurance carrier to reduce its participation in health exchanges created under the Affordable Care Act. The company offered plans on 15 state exchanges this year, but will only participate in the Virginia, Delaware, Iowa and Nebraska exchanges next year. The company said participating in the exchanges was proving to be unprofitable. Other large carriers, including UnitedHealth Group and Humana, have also decided to reduce their participation in exchanges.
 
The move has to potential leave many consumers, especially those in rural areas, with very limited options on the state exchanges, according to a U.S. News and World Report article. The article includes comments by three NAIFA members explaining how limited options and high costs on exchanges are affecting their clients and practices.
 
"I'm looking at having some pretty upset customers," Ed Anderson of NAIFA-Missouri told U.S. News. "There is the potential hit with costs, but also the providers they have been accustomed to using and that have cared for them will no longer be available."
 
NAIFA-North Carolina’s Fred Joyner told the publication that residents of many counties in his state will have only one carrier option on the exchange. "It's going to be a mess, there's no doubt about it," he said.
 
Jason Talley of NAIFA-Texas told U.S. News that his practice is no longer able to serve consumers seeking coverage through the exchange, because problems with the system make it cost-prohibitive. "The bottom line is that this hurts people," he said. "We're seeing it. This is the real result."  
 
  • Posted August 18, 2016 IN
  • Comments (1)


Comments
Lloyd Robinson
With so much confusion in the health insurance market it is hard for us as agents. My clients are even more concerned that they may not be able to find health coverage for them.
8/25/2016 4:01:47 AM