UnitedHealthcare files to rejoin Md. health insurance exchange

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UnitedHealthcare, the nation’s largest private health insurer, which fled the state’s individual market in 2017, has filed to rejoin two other carriers in providing policies through the Maryland health insurance exchange.

Gov. Larry Hogan announced that the insurer intends to offer individual health plans through Maryland Health Connection in 2021.

Currently, only two insurers – CareFirst BlueCross BlueShield and Kaiser Permanente – offer individual market health plans through the Maryland marketplace.

Having a third insurer in the exchange is likely to foster greater competition in the individual insurance marketplace and provide  consumers more choices. It’s also a sign that the insurance industry views Maryland’s market as strong and one in which  companies can operate profitably.

“We are thrilled to have another insurance company entering the marketplace, so that Marylanders across the state will have more options to choose a health plan that works best for themselves and their families,” said Michele Eberle, executive director of the Maryland Health Benefit Exchange.

“UnitedHealthcare intends to offer individual plans in 2021 that provide strong coverage options for those shopping on Maryland Health Connection,” said Krista Nelson, senior vice president, UnitedHealthcare. “We look forward to working with the state of Maryland to help individuals get access to health care coverage that meets their care needs.”

UnitedHeathcare had been one of the insurers on the exchange when it opened in 2014. In 2015, more than 50 policies were available to Maryland consumers on the exchange from United Healthcare, Cigna, Evergreen Health, CareFirst and its subsidiaries and Kaiser.

But all but Kaiser and CareFirst were to leave in the ensuing years, driven away mostly by losses attributed to the failure of the exchange to attract healthy participants so as to lower the overall cost of coverage. Consumers on the individual market were left with a dwindling number of options.

They were also faced with double-digit rate hikes in early years, as insurers – and regulators – tried to find a balance that would allow the companies to continue to operate on the exchange while still having plans that were affordable. Subsidies help lower the cost for less affluent consumers.

In 2018, the state approved a reinsurance program, which required a federal waiver, that allowed carriers to be reimbursed for some high-cost claims, bringing down the cost of insuring the sickest people and making insurance more affordable for everyone.

The program was funded by a state assessment on carriers. The program is also funded by federal pass-through money, funds the federal government saves by paying lower subsidies because of lower premiums.

As a result, premiums in 2019 on plans on Maryland’s exchange decreased by an average of 13%; average premiums declined by another 10% this year.

Nearly 159,000 people enrolled in private plans through the Maryland Health Connection during the initial 2020 open enrollment period. Nearly 29,000 people have since enrolled during a special coronavirus open enrollment period, running through June 15.

“Another carrier entering the individual market is further proof that we’re moving in the right direction and have successfully stabilized the market,” said Maryland Insurance Commissioner Al Redmer Jr.

Maryland Health Benefit Exchange is a public corporation and independent unit of state government. It is responsible for the operation of the exchange, an online marketplace where Maryland residents can compare and enroll in health insurance as well as determine eligibility for Medicaid or financial help with private plans.