The board of Covererd California rejected a bid from UnitedHealth to sell plans on the state exchange in 2016, according to the Los Angeles Times.
Dominant insurers worry that consumer operated and oriented plans have an unfair advantage over their competition in healthcare markets, especially because they're receiving millions in federal funding to operate their business.
Insurers next year will be keeping premiums flat or even decreasing them in many parts of the country. In fact, consumers in just two states surveyed will see premium increases of 5 percent or more, according to a new study from the Urban Institute and the Robert Wood Johnson Foundation.
The competition continues to heat up within the insurance industry and the health insurance exchanges as start-up companies and consumer oriented and operated plans (CO-OPs) are doing so well that they're expanding into new markets.
Now that there's an increase in insurer participation on more health insurance exchanges, the prices for all plans should decrease, says Humana CEO Bruce Broussard.
Insurers will face tougher competition in the upcoming open enrollment period for health insurance exchanges as new entrants start selling plans on the online marketplaces, the New York Times reported.
Non-profit insurers will soon be the dominating type of insurance company due to competition fostered by the Affordable Care Act, says industry watchdog Wendell Potter. If for-profit insurers want to remain viable in the post-ACA market, the former Cigna exec says they must diversify by operating outside the United States and expanding their business lines.
It's been a hotly contested debate since the Affordable Care Act passed: whether an increase in competition among insurers will actually lower healthcare costs. A recent paper from the National Bureau of Economic Research set out to reach a definitive answer.
Health insurance exchanges have had mixed success in boosting competition in different insurance markets, according to a new study from the Kaiser Family Foundation. "There are some examples of smaller or newer plans being able to get a sizable piece of the market in the exchanges, but by and large a lot of the players in the exchanges that are the biggest [now] were the biggest before," Cynthia Cox, a senior analyst at Kaiser, told Bloomberg.
How did states' approach to Affordable Care Act implementation influence insurer participation, competition and premiums? To find out, a new Robert Wood Johnson Foundation brief compared five actively pro-reform states with three states that have taken only a limited approach to or have not participated in the healthcare reform law.