The Iowa Insurance Division announced today that “seven companies have applied to offer Iowans health insurance through the federal health insurance marketplace” for 2016. This year, Coventry was the sole provider selling through the exchange, following the collapse of CoOportunity Health. Although Iowa’s dominant insurance provider, Wellmark Blue Cross/Blue Shield, is staying off the exchange for another year, Coventry and Minnesota-based Medica want to sell individual plans statewide, and United Healthcare wants to sell in 76 of Iowa’s 99 counties. The Iowa Insurance Division’s full news release is after the jump. Click here (pdf) for a list of counties where each company has applied to offer coverage through the exchange.
Increased competition will not only give roughly 45,000 Iowans more options for health insurance coverage, possibly at lower cost, but will also remove the threat that Iowans could lose access to federal subsidies for lack of a provider willing to sell through our state’s partnership exchange.
Iowans could still lose access to the subsidies many need to make health insurance affordable, depending on how the U.S. Supreme Court rules in the King v Burwell case. An act of Congress could easily address a ruling that invalidated subsidies for Americans who purchase insurance through the federal website, and lawmakers have floated several ideas. But key Republicans don’t want to pass any “fix” to the hated 2010 health care reform law.
Iowa Insurance Division press release, May 15:
Seven Insurance Companies Apply to Provide Health Insurance to Iowans through the Federal Health Exchange
(DES MOINES) May 15, 2015-
Iowa Insurance Commissioner Nick Gerhart announced that a total of seven companies have applied to offer Iowans health insurance through the federal health insurance marketplace.
“It’s great to see Iowans will have choices available to them when choosing their health insurance coverage for 2016,” Gerhart said. “Reviewing health insurance policies each year is a very important task. Iowans looking to buy insurance on the federal health insurance marketplace in 2016 will be able to compare plans later this year for the right balance between benefits offered and price to best fit their needs.”
Coventry Health Care of Iowa, Inc.and Medica Insurance Company have applied to sell their individual plans statewide. United Healthcare of the Midlands has applied to sell their individual plans in at least 76 counties.
Avera Health Plans and Gundersen Health Plan have applied to offer individual and small employer group plans for smaller regional markets. Avera Health Plans has applied to offer their plans in nine counties. Gundersen Health Plan has applied to offer their plans in five counties.
United Healthcare Insurance Company has applied to offer small group plans statewide. Sanford Health Plan has applied to offer small group plans in ten counties.
There are also a number of carriers offering individual and small group plans off the federal health insurance marketplace that Iowans may also choose from. However, the only way that Iowans can receive a tax credit toward the cost of the premium is if they both qualify and enroll through the federal health insurance marketplace.
Open enrollment for the exchange will begin on November 1. Plan details will likely be available in mid-October. People will be able to apply using the federal www.healthcare.gov website. Iowans may also use their insurance agent, a certified application counselor or a navigator, an entity established under the law to assist in the enrollment process.
County listing for on-exchange coverage
About the Iowa Insurance Division
The Iowa Insurance Division (IID) has general control, supervision and direction over all insurance and securities business transacted in the state, and enforces Iowa’s laws and regulations. The IID investigates consumer complaints and prosecutes companies, agents and brokers engaging in unfair trade practices. Consumers with insurance or securities-related questions or complaints may contact the IID toll free at 877-955-1212 or visit the division on the web at www.iid.iowa.gov