Exchange’s success proves attractive to two insurance companies that are now seeking to participate in the digital marketplace
Two new insurance companies have expressed interest in selling their policies through Kentucky’s health insurance exchange. The state-run exchange has provided policies to more than 421,000 people throughout the state during its first open enrollment period. The exchange will have another enrollment period later this year and insurance companies are eager to participate in the exchange in order to gain access to a growing consumer base that is looking for insurance coverage.
State residents have shown favor for the exchange, purchasing policies from private companies and enrolling in Medicaid
Kentucky residents have been flocking to the state’s insurance exchange in order to sign up for the state’s Medicaid program and purchase affordable policies offered by private insurance companies. Some of these people are eligible for tax credits that make the policies sold through the exchange less expensive. While the state’s exchange has encountered some technical difficulties, it has largely been successful in engaging consumers and serving as a lucrative market for insurance companies.
Insurers would like to take advantage of the exchange’s success
The success of the state’s insurance exchange has been quite encouraging for some insurers. Many of the state’s private insurance companies were skeptical of the exchange and its ability to perform as a viable marketplace for consumers. These concerns were largely laid to rest during the exchange’s first open enrollment period, during which consumers proved that they are willing to shop for and purchase insurance products through the exchange with or without the incentive of tax credits.
Other states see similar results following the successful open enrollment periods of their own insurance exchanges
Kentucky is not the only state in which insurers are looking to participate in exchanges. Because of the existence of these exchanges, insurers are beginning to feel the need to engage consumers in new ways in order to find success in health care market. Exchanges represent a viable way for insurers to engage consumers and offer them policies that may not be available through the conventional private market.