New policies are expected to be made available through state’s exchange later this year
Alabama residents are set to have more options when it comes to purchasing insurance coverage through the state’s exchange later this year. The Alabama Department of Insurance has announced that United Healthcare has submitted plans to participate in the state’s exchange. These plans are currently being reviewed and are expected to be sold through the exchange during the next open enrollment period, which will begin on November 15 of this year.
United Healthcare wants to participate in the state’s insurance exchange
Alabama’s health insurance exchange is being managed by the federal government. While this gives the state limited authority over the operations of the exchange, the state’s regulators must still ensure that policies sold through the exchange comply with Alabama law. The state’s exchange has seen a fair degree of success in selling policies to consumers, but like other exchanges managed by the federal government, it also fell prey to severe technical problems. These issues have prevented many people from applying for health insurance coverage through the exchange.
Insurers are beginning to see the positive aspects of exchanges
Many insurance companies were wary of exchanges as they were launched throughout the country. These exchanges represent one of the more ambitious initiatives of the Affordable Care Act in that they are designed to make health insurance coverage more accessible to a wider range of consumers. Many of the people that receive coverage through exchanges are unable to afford this coverage through the traditional market. As such, insurers were concerned about the financial aspects of the exchange and whether or not people purchasing policies would actually be able to pay for them.
More insurers are expected to participate in state exchanges as they continue to engage consumers effectively
Despite the early technical difficulties of exchanges, they have managed to find a significant amount of success throughout the country. Many of those purchasing coverage through these exchanges qualified for financial aid from the federal government, which has significantly mitigated the financial concerns coming from insurance companies. As exchanges continue to prove fruitful, more insurance companies are likely to show interest in these markets.