Health insurers Anthem and MDWise both announced Wednesday plans to scale back individual plan offerings under the Affordable Care Act in Indiana next year, citing high costs and uncertainty about the future of federal subsidies.
“Planning and pricing for ACA-compliant health plans has become increasingly difficult due to a shrinking and deteriorating individual market, as well as continual changes and uncertainty in federal operations, rules and guidance, including cost sharing reduction subsidies and the restoration of taxes on fully insured coverage,” Anthem said in a statement Wednesday.
MDwise echoed similar concerns, saying its participation in the health insurance exchange lost the company $21 million in 2016 alone.
“When MDwise entered the Marketplace Exchange in 2014, it did so to provide continuity to its Medicaid members who no longer qualify for Medicaid and are looking to purchase coverage on the Marketplace Exchange. Fewer members than expected have lost their Medicaid coverage and entered the Marketplace Exchange market,” the company said in a statement Wednesday.
The company said 30,800 members throughout Indiana are covered by MDwise through the Health Insurance Exchange. Its larger Medicaid program covers 370,000 members across all 92 Indiana counties.
Indiana Gov. Eric Holcomb said this most recent development is “more evidence that the current federal system isn’t working” and “underscores the need for reform.”
Hoosiers who are currently insured by Anthem and MDwise under the federal marketplace will be covered through the year.
