Best news I’ve heard in a while: Coventry has told the Des Moines Register’s Tony Leys that it will continue to sell health insurance through Iowa’s exchange during 2016. Since the collapse of Co-Oportunity Health, Coventry has been the only provider selling individual and family policies on Iowa’s exchange. If the company had opted out for 2016, roughly 40,000 Iowans who qualify for federal subsidies would have had no way to obtain that assistance, likely pricing them out of health insurance for next year.
The 800-pound gorilla of Iowa’s insurance market, Wellmark Blue Cross/Blue Shield, will yet again opt out of our state’s exchange in 2016, Leys reported. Iowa’s Insurance Commissioner Nick Gerhart lacks the power to force Wellmark to sell through the exchange, because Governor Terry Branstad insisted on forming a “partnership” exchange with the federal government, rather than a fully state-based exchange.
More competition in Iowa’s health insurance market would be preferable; currently West Virginia is the only other state with just one company selling policies on the exchange. Still, Coventry’s decision to stay for next year removes a huge threat to the well-being of thousands of Iowa families. I was worried that Coventry would cut their losses here after taking on most of the relatively expensive former Co-Oportunity customers.
The U.S. Supreme Court’s pending ruling in King v Burwell remains another potential threat to the 40,000 Iowans who rely on federal subsidies to make health insurance affordable. It’s not clear whether the Republican-controlled Congress could pass a fix if the high court rules that those subsidies are not allowed for Americans who purchase health insurance through the federal website. Some Republicans would be willing to address the problem to preserve access to health care for millions, but others would insist on a full repeal of “Obamacare,” the 2010 Affordable Care Act.
UPDATE: At least one other company will also offer health insurance for 2016 through Iowa’s exchange. Excerpts from Leys’ updated report for the Des Moines Register are after the jump.
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