CareConnect, Long Island-based Health Insurer, Going Out of Business

CareConnect, Long Island-based Health Insurer, Going Out of Business

Earlier this year, well over 40 mostly rural counties faced the prospect of having no options for their exchanges.

Insurers who withdrew blamed both the law itself - it failed to attract enough young and healthy customers to balance out an influx of sicker, costlier ones - and the uncertainty instilled by Mr. Trump's wavering commitment to "cost-sharing" payments for insurers and the individual mandate that requires people to get health insurance or pay a tax. The county, in the northwest corner of the state, had been left without ACA coverage for 2018 after Anthem Inc. said in June it would pull out. A look at insurance company investments and holdings shows they are not hurting, but profits will be diminished if they are unable to place unreasonable restrictions on what they will cover.

Northwell Health has made a decision to pull the plug on its CareConnect private health insurance company, and thus withdraw from of New York State's insurance market next year.

“There is a lot of uncertainty facing consumers when it comes to health insurance and these announcements will provide important relief, ” she said.

Having ACA options in every US county is considered an important win for ACA advocates after President Donald Trump insisted on letting the healthcare legislation "implode" in order to facilitate a Republican-friendly replacement.

Small, rural counties have had the most trouble securing insurers due to their smaller, older customer base. The release added: "It's also projected that 1,478 counties - over 45 percent of counties nationwide - could have only one issuer in 2018".

Despite those challenges, insurers are expanding to fill holes in these markets because they're getting a nudge from state regulators who don't want to leave their constituents without options.

Also, many Obamacare enrollees will find they have fewer choices for next year. Another 26 percent are in counties with two options.

Insurers are anxious, in particular, about the fate of billions of dollars in payments from the government to cover cost-sharing reductions for customers with modest incomes. The county has about 350 people on the Obamacare exchange this year.

Northwell Health is New York State's largest health care provider, with 22 hospitals and 550 outpatient facilities. The company and state Department of Insurance planned to announce the arrangement Thursday.

"You know, I said from the beginning: Let Obamacare implode, and then do it".

The federal government announced last week that it will make these payments for this month, but their future is unclear.



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