Morning Briefing
Summaries of health policy coverage from major news organizations
Bucking The Current Trend, Cigna Decides To Expand Into ACA Markets
The insurer Cigna is expanding into a few new ObamaCare markets, a countervailing force to some recent high profile exits by insurers. Cigna, one of the nation鈥檚 largest health insurers, said Tuesday that it has filed to offer insurance on the ObamaCare marketplaces next year in Chicago, the Raleigh/Durham area of North Carolina, as well as Northern Virginia and Richmond. (Sullivan, 7/26)
One of the nation's largest health insurance companies plans to enter the Obamacare marketplace in the Chicago area for the first time, bringing new competition as other insurers exit or go out of business. The Tribune has confirmed that Cigna, based in Bloomfield, Conn., has filed plans to sell health policies to individuals and families who purchase their own coverage in the individual market. If the plans are approved by Illinois regulators, Cigna will start selling policies Nov. 1, when enrollment for 2017 Obamacare coverage opens. (Sachdev, 7/26)
Iowa鈥檚 largest health insurer says it is seeing success from its efforts to reward hospitals and clinics for providing high quality care. Wellmark Blue Cross & Blue Shield announced Tuesday that its accountable care organization contracts with 13 hospital and clinic systems saved $35 million in health care costs last year. Under such arrangements, hospitals and clinics are paid for keeping patients well, instead of just for ordering more tests and providing more treatments. (Leys, 7/26)
The recent announcement that Covered California premiums will rise by double digits in 2017 is only part of the challenge for the nation鈥檚 largest health exchange. A newly released study found that 4.38% of Covered California policyholders enrolled in Blue Shield or Blue Cross plans were rejected by doctors who were supposedly accepting their insurance, compared with 1.41% for people with the same plans purchased outside the exchange. (Sisson, 7/27)
There鈥檚 been a lot of bad news about rising Obamacare exchange premiums over the past few months. But things could get much worse for insurers (and consumers) if a court ruling brought by House Republicans against the administration prevails. At issue in House v. Burwell is whether the administration has been illegally paying cost-sharing reduction subsidies to insurers. This issue was also the subject of a Republican House investigation, which resulted in a recent report concluding that the administration knowingly made the payments without a congressional appropriation, which is illegal. (Owens, 7/26)