UnitedHealthcare to withdraw from Iowa exchange in 2017

Officials with the Iowa Insurance Division confirmed on Monday that UnitedHealthcare no longer would sell subsidy-eligible insurance plans on the state's exchange in 2017 — withdrawing from the state after one year of participation.

The Minneapolis-based insurer announced last week that it would operate only in a handful of health insurance exchanges in the upcoming enrollment season, down from 34 states this year. The insurer sighted financial losses as the driving reason for the move.

'We're obviously disappointed about UnitedHealthcare's decision as thousands of Iowans are now forced to make changes,' Iowa Insurance Commissioner Nick Gerhart said in a news release. 'However, we understand that the company's decision to withdraw is a business decision. The decision seems more national in scope, but thankfully we anticipate having other offerings around the state.'

This decision will affect approximately 8,700 Iowans insured by UnitedHealthcare of the Midlands Inc. and 328 individuals insured by UnitedHealthcare Life Insurance Co.

UnitedHealthcare Insurance Co. will not continue its participation in the SHOP Exchange, however, the carrier will continue to offer small group products outside of the SHOP Exchange in Iowa, according to the insurance division.

About 55,000 Iowans are enrolled in a marketplace plan and UnitedHealthcare offered one of the lowest-cost silver plans in 71 of the 76 Iowa counties in which it sold plans, according to a Kaiser Family Foundation analysis.

Consumers affected by this decision will receive notice from the carrier and must switch to another insurer to continue their coverage for 2017 when the next open enrollment period begins Nov. 1.

Insurers have until May 11 to submit forms and rates for Affordable Care Act-compliant plans to the Iowa Insurance Division.

Coventry Health Care of Iowa and Minneapolis-based Medica also sold plans during the 2016 enrollment season. Medica has confirmed it will sell plans again this year.

Wellmark Blue Cross Blue Shield, the state's dominant insurer announced last fall it would participate in the 2017 enrollment season.

'Although other carriers are choosing to exit this distribution channel, we believe that this is a critical time for us to be on the exchange as our members seek access to subsidies to help reduce the cost of their health insurance premiums for themselves and their families,' said Wellmark spokeswoman Traci McBee in an email.