Iowa had only two companies in the online insurance Marketplace for 2014. For 2015, it looks like they will be down to one.
For 2014, CoOportunity Health offered some very good plans at good prices. Unfortunately, they were probably too good. My employer was able to get us a Platinum plan in 2014 for less than what we paid in 2013. We were told when we enrolled that they were being run by a former Iowa insurance commissioner and a retired Wellmark executive. They had federal money to set up shop with. Then a few months ago, we were informed that they would not be offering the Platinum plan in 2015. The Gold plan ended up being about the same price, but the deductible was $1100 higher. Oh well, we thought. They still had the better network of providers. Could be worse.
It got worse rapidly. On Wednesday, I heard that they were in receivership. Searching the news, I found that they would be in business for 2015, but run by the Iowa Insurance Commissioner. They're not financially solvent enough to continue.
The Iowa Insurance Division says that claims will be paid as long as you pay your premiums. However, they also say it "may be in your best interest" to get coverage elsewhere.
Wellmark Blue Cross has been sitting on the sidelines, refusing to play as a Marketplace insurer in Iowa. Tax credits are only available to people who buy coverage through the Marketplace. Insurance co-ops like CoOportunity were set up so there would be more options for consumers.
Wellmark was also able to hang on to a large number of healthy customers who were keeping their "old plans," according to the Des Moines Register. The "old plans" are grandfathered plans that are not ACA-compliant, something the administration backed down on for 2015. Wellmark held the 2015 rate increases for grandfathered plans to under 6%, while their ACA-compliant plans went up between 11.9 and 14.5 percent. ACA-compliant plans went up between 11.9 and 14.5 percent.
I support the ACA. It's not perfect, but it's better than what we had. Aside from the fact that we're scrambling for new insurance, it burns me to see the ACA fall apart this way. Congress cut some of the funding that would have kept this company going. The right-wingers are already crowing about it, blaming Obama personally. And Wellmark will reap the benefits of holding out, cranking up rates in a state where there is little competition.