Thursday, October 22, 2015

Coventry withdrawals from Kansas marketplace

A major provider of health insurance in Kansas is pulling out of the Affordable Care Act marketplace. Two companies under the Aetna corporate umbrella — Coventry Health & Life Insurance Co. and Coventry Health Care of Kansas Inc. — are withdrawing from the marketplace just two weeks before the Nov. 1 start of the next open enrollment period. Coventry merged with Aetna in 2013.

Rohan Hutchings, an Aetna spokesperson, said company officials made the decision after reviewing a range of business factors, including the company’s competitive position in the 17 states in which it offers marketplace plans.

“Once we conducted that review, we reluctantly came to the decision that we could no longer meet the needs of our individual on-exchange members in Kansas,” Hutchings said to KHI News. Hutchings said Kansas policyholders would be covered through the end of the year.

The open enrollment runs from November of this year through Jan. 31, 2016, although Dec. 15 is the last day to enroll for coverage starting Jan. 1.

Coventry didn’t inform Kansas Insurance Commissioner Ken Selzer of its decision until a few days ago, said Clark Shultz, the department’s director of government affairs. “We are so close to open enrollment, this is very last minute,” Shultz said. “It has really taken us by surprise.” Shultz said that Selzer plans to meet with Coventry officials this week to gain a better understanding of their reasons for withdrawing. “We really don’t have a good handle on them yet,” he said. “They’ve just said it was for a combination of reasons.”

In August, Selzer reduced rate increases requested by Coventry and the other companies participating in the Kansas marketplace. Coventry sought increases of 20 percent to 35 percent, depending on the plan.

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