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.
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