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j_hce_2016a_2016-06-09t09:01:12z0 Hearing Summary

Date: 06/09/2016


Discussion of Carrier Transitions for 2017


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09:01 AM -- Discussion of Carrier Transitions for 2017

Representative Primavera called the meeting to order. A copy of the meeting agenda was distributed (Attachment A). Kevin Patterson, Chief Executive Director, Connect for Health Colorado, discussed the insurance carriers that are leaving the individual market and those carriers that are reducing their offerings through the Colorado's health insurance exchange (exchange). United Healthcare and Humana Insurance will not offer individual plans in 2017, and Rocky Mountain Health Plans and Anthem Blue Cross and Blue Shield will reduce their offering on the individual market. Mr. Patterson stated that Bright Health Plans is possibly entering the individual market for 2017. Mr. Patterson said that seven carriers will offer plans on individual market through the exchange and four carriers will offer small group plans through the exchange. He said about 44,000 exchange customers will have to select new plans for 2017. He discussed how Connect for Health Colorado will communicate with clients about the changes occurring to the exchange options for 2017.

160609 AttachA.pdf160609 AttachA.pdf

09:06 AM

In response to questions, Mr. Patterson stated that about 92,000 exchange customers will not be effected by the departure of carriers from the market. Steve ErkenBrack, Connect for Health Colorado Board Vice-chair and Rocky Mountain Health Plans President and CEO, responded to questions about why carriers are leaving or reducing offerings on the individual market. He discussed the impact of guaranty issue on the individual insurance market and medical loss ratio. He discussed the impact the individual plan clients are having on the other clients covered by Rocky Mountain Health Plans. Committee discussion with Mr. ErkenBrack about the individual marketplace and Rocky Mountain Health Plans ensued.

09:18 AM

Mr. Patterson answered questions about how the changes in the individual market will effect individuals, how Connect for Health Colorado monitors the number of plans that are offered in various parts of the state, and the rate increases that are expected for 2017. He discussed how the subsidy rates are calculated and the analysis that Connect for Health Colorado conducts related to the rates individuals pay for insurance premiums. Mr. ErkenBrack discussed how actuaries are involved in setting premium rates and the unknown factors related to premium stabilization funds. Committee discussion with Mr. Patterson about the individual market and Bright Health Plans ensued. In response to a question, Mr. ErkenBrack discussed Rocky Mountain Health Plans' Monument Health PPO Plan. Mr. Patterson answered a question about how to prevent other carriers from leaving the market.