PHOENIX — Another Arizona health insurance company has told state health-insurance regulators that it will exit the Affordable Care Act marketplace next year, leaving consumers in several counties with one less option.
Health Choice Insurance Co. officials confirmed that the insurer will drop marketplace plans in Arizona next year. The insurer sold plans in Maricopa, Pima and a handful of rural counties this year, but it won’t sell any Affordable Care Act plans next year.
“The business and regulatory uncertainties that exist at this time with respect to the federal health-insurance marketplace significantly impacted our decision to discontinue our marketplace product offerings,” said Health Choice Communications Director Laura Waugh. Waugh said the insurer’s non-marketplace plans will not be affected.
Health Choice, owned by the Tennessee-based hospital chain Iasis Healthcare, is the latest in a flurry of Affordable Care Act marketplace exits in Arizona.
Two large health insurers, UnitedHealthcare and Humana, previously told the Arizona Department of Insurance they won’t sell marketplace plans in Arizona next year. Blue Cross Blue Shield of Arizona and Health Net also have filed paperwork to drop marketplace plans in Maricopa and Pinal counties next year.
The Department of Insurance officials said insurance companies have until Aug. 9 to add or eliminate service areas. State and federal health insurance officials will review the filings, which will be available to the public in late August, Department of Insurance officials said.
“We will see in the next month or so who’s in and who’s out,” said Dr. Daniel Derksen, director of the University of Arizona Center for Rural Health. “We have been very fortunate in Arizona to have robust competition.”
Derksen said it’s a “natural evolution” for some insurers drop out as they learn how to properly price coverage and ensure access to quality health care for consumers.
“I remain hopeful there will be enough insurers to remain and compete for folks who are eligible for marketplace coverage,” Derksen said.
Arizona insurers exiting the marketplace say they will still provide other types of plans, such as Medicare Advantage or employer plans.
