ACA Competition and Choice - Not

[Yagents]

So much for free market competition and consumer choice......

They will allow a brand new company (Oscar), with no track record to come in as an experiment on patients, but not allow a deeply entrenched experienced company (UHC) to play.

California rejects UnitedHealth's bid to sell Obamacare statewide - LA Times

The earliest UnitedHealth could sell statewide is now 2017. Covered California's decision came Thursday afternoon, and the company didn't comment on its immediate plans.

UnitedHealth had a chance to join Covered California when it launched in the fall of 2013 as part of the health-law rollout. Instead, the company exited California's individual insurance market and bypassed most of the Obamacare exchanges nationwide.

Peter Lee, executive director of Covered California, said established insurers shouldn't be free to come in right away. Those insurers, he said, should not be allowed to undercut rivals who stepped up at the start and made significant investments to sign up 1.2 million Californians during the first open enrollment.

 

[timsip]

So much for free market competition and consumer choice......

They will allow a brand new company (Oscar), with no track record to come in as an experiment on patients, but not allow a deeply entrenched experienced company (UHC) to play.

California rejects UnitedHealth's bid to sell Obamacare statewide - LA Times

The earliest UnitedHealth could sell statewide is now 2017. Covered California's decision came Thursday afternoon, and the company didn't comment on its immediate plans.

UnitedHealth had a chance to join Covered California when it launched in the fall of 2013 as part of the health-law rollout. Instead, the company exited California's individual insurance market and bypassed most of the Obamacare exchanges nationwide.

Peter Lee, executive director of Covered California, said established insurers shouldn't be free to come in right away. Those insurers, he said, should not be allowed to undercut rivals who stepped up at the start and made significant investments to sign up 1.2 million Californians during the first open enrollment.

So Mr. Lee's gripe is that UHC made sound business decisions and waited out the first two (I would have stayed out until 2018) years so they can come in with lower premiums than everyone else? Who is Mr. Lee punishing? Certainly not UHC as they will still be successful without Covered California. I hope the voters in Cali remember this move when their premiums get higher over the next two+ years.

 

[kgmom219]

How about they get it together for the states they are already in on the Federal Exchange before trying to add states?

But it is interesting....perhaps UHC is in this thing for the long haul?

 

[somarco]

Pretty sure the 3yr moratorium was baked into the law, not just a CA whim

 

[Ann H]

The bill that passed Congress did not have the 3-year moratorium that was in previous versions of the bill. Peter Lee loves all these local newbie companies with their tiny networks, but hates the big boys!

 

[somarco]

I memorized the original bill and ran out of room in my brain for revisions and administrative overrides

 

[Yagents]

I also remember a 3 yr wait rule in CA. But, if you read the article, it says they are going to let them sell in 5 counties where they have only 1-2 carriers competing. Seems they can bend when it's in the exchanges' best interest to look better on paper. Citizen's in other parts of the state take a back seat and a second potato.

 

[timsip]

I also remember a 3 yr wait rule in CA. But, if you read the article, it says they are going to let them sell in 5 counties where they have only 1-2 carriers competing. Seems they can bend when it's in the exchanges' best interest to look better on paper. Citizen's in other parts of the state take a back seat and a second potato.

Bending the law? Now who would do such a thing? Apparently laws evolve just like political standings on same sex marriage.

 

[somarco]

Bending the law? Now who would do such a thing?

You forget Obama bent the cost curve on health care

 

[Post Quartermaster]

I don't think this is a 3 yr moratorium issue so much as it is a very good example of how State based exchanges are allowed to run on an "Active Purchaser Model"; whereas QHP bids are just that - "bids" to play in the system that the state has the right to reject. On the other hand, the federal marketplace is a "passive purchaser model".......

As I recall, the active purchaser model was done to encourage states to prod carriers for better bids on plans. Of course, there is a lot of potential issues with this type of setup. Imagine the palm greasing this could potentially encourage.....Very similar to Medicaid/private carrier partnerships, in many respects, which has been a movement pushed by Republicans. NC in particular has been very interesting on this front......