Kansas residents may be forced to find new coverage as Coventry exits exchange
Several thousand residents of Kansas may have to find new health insurance coverage soon. Coventry, a prominent insurer in the state, has announced that it will be exiting the Kansas insurance exchange. Currently, some 45,000 people receive coverage through Coventry policies that are sold through the exchange. Coventry accounts for approximately half of all policies that Kansas residents have purchased on the state’s exchange. These consumers still have options, but they may be more expensive, in some cases.
State agency had hoped to change the insurer’s mind
The Kansas Insurance Department first learned of Coventry’s plans on October 14. Over the following says, the agency attempted to find a way to change the insurer’s idea, but was ultimately unsuccessful. This may have financial repercussions for consumers, as the state agency suggests that many Coventry policyholders are not eligible for federal subsidies that help pay for their policies, but their income is not high enough for them to consider health insurance coverage from other companies affordable. Coventry will be notifying its policyholders of this issue in the coming weeks, offering them other options when it comes to finding new coverage through the state’s exchange.
Coventry believes that it can no longer meet the needs of exchange customers
One of the reasons Coventry is exiting the Kansas insurance exchange is because the company wanted to focus more heavily on markets where it can provide better services to its customers, according to Rohan Hutchings, a spokesperson for the insurer. Coventry had reviewed its exchange business this year and had decided that it can no longer meet the needs of its customers in the exchange. The insurer will, of course, continue to offer policies through the private market, as well as group options through the state’s Medicare program.
United Healthcare to join state’s insurance exchange
As Coventry exits the state’s exchange, United Healthcare will be entering into the market. The company will be joining others in offering policies, which will go into effect on January 1, 2016. Consumers will be able to enroll for health insurance coverage beginning on November 1 of this year, when the next open enrollment period launches.