Humana Leaving More Obamacare Marketplaces
On the heels of a monumental announcement from the Department of Justice and their plans to block two mega mergers in the insurance industry, one of the key stakeholder involved announced that they would be pulling out of several more states.
For nearly a year the federal government has been wrestling with how to approach two massive deals in the insurance industry. This week they announced their plans to block them because of anti-trust concerns.
The two deals in place include a $54 billion merger between Anthem and Cigna as well as a $37 billion deal between Aetna and Humana.
Today Humana announced they are leaving several states leaving them serving only 156 counties in 11 states.
This means that they will only be offering individual policies available on the Obamacare exchanges at a limited amount. Their ACA business has diminished the last three years.
Whether the decision is related to the announcement from antitrust officials moving to block their merger remains to be seen. According their earnings report they were contemplating this since May and only now released the details.
This leaves individuals with pre-existing conditions even less choice in these states and others. An exodus began earlier this year when the largest insurer in the country, United Healthcare, announced their plans to leave most states.
Whether or not you are a fan of federal regulations, this is a consequence of what happens when companies are not allowed to operate naturally within their industry. New mandates in the law created standardized plans and there have not been enough health individuals enrolling.
Now Humana joins United and others in pulling out of most markets creating issues much larger beyond price. The ACA was created to introduce additional competition into the marketplace and the exact opposite is happening. As 2017 is a pinnacle year in the success or failure of the ACA, prepare for the worst when it comes to rising premium costs.
This is bad, but what is worse is the fact that the law was supposed to introduce more competition through “state based exchanges.” The rollout of the law has been flawed from the start and the enrollment numbers are well below average. As far as competition went, there looks to be much less. Now consumers who really need access will have to scramble for a new plan that is affordable despite massive increase looming.
Early indications show that individuals and businesses are going to be in for some serious pain. The volatility in the marketplace requires education and sometimes with all of the other challenges out there its difficult to find time to keep up with all of these things and still run an organization or department.
This is where E.D Bellis comes in. Our team can help you understand how the law affects your situation and put together an action plan for your company. Contact us here to get signed up for our weekly webinar series that will cover all of the areas you need to be concerned about with regards to the changing healthcare and insurance landscapes.
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