Just In...Unicare Pulling Out....

[STIBROKER]

October 28, 2009

Dear Broker:

UniCare has made a difficult strategic decision to exit commercial health insurance markets in Texas. Following a transition period, UniCare will no longer provide health benefits in Texas.

While UniCare continues to be financially secure, competitive pressures have made it increasingly difficult for us to maintain our high standards for excellent customer service and affordable, quality benefits that you expect from us.

UniCare is pleased to collaborate with Blue Cross and Blue Shield of Texas (BCBSTX), which will offer guaranteed replacement coverage to UniCare's existing employer groups and individual policyholders. We believe that BCBSTX is best positioned to offer quality products, a high level of benefits and the superior customer service that our customers have come to expect. In addition, like UniCare, BCBSTX is a statewide plan that includes a comprehensive network of physicians and hospitals to choose from.

For UniCare customers who elect to transition their benefits to BCBSTX, UniCare will pay all claims for covered services rendered on or before December 31, 2009. BCBSTX will pay all claims for covered services from the time and date specified in their offer letter. There will be no break in coverage.

For UniCare customers who do not choose to transition their benefits to BCBSTX, UniCare will offer to renew their policy but only for a term ending on June 1, 2010. If the customers' renewal date falls after June 1, 2010, UniCare will terminate coverage effective June 1, 2010 if permitted to do so by the terms of the policy, or otherwise continue to provide coverage up to the renewal date.

BCBSTX will be in contact with you soon to discuss an offer to transition your customers' health benefits. In the meantime, if you have questions regarding UniCare's decision, please use the below contact information:

• For questions regarding Large Group, contact your UniCare Account Manager or BCBSTX Sales Representative
• For questions regarding Small Group and Individual, contact your UniCare Agent Support team at 877-864-2468

If your customers also have dental, vision, group life or disability coverage through UniCare, the BCBSTX offer will also include that coverage.

Until UniCare has completed its exit from the market, we will continue to process claims as we do today and honor the commission structure that is in place.

We have enjoyed a productive working relationship with you and want to help make this transition as seamless as possible. BCBSTX looks forward to the opportunity to work with you to provide your customers with the same level of quality health care benefits and service that they received with UniCare.

 

[wstcst1]

I read this morning that they were pulling out of Illinois also.

 

[taterpeeler]

first death in the health care reform battle. GI, no true enforcement to make people get coverage, texas having the higest % of uninsureds, heavy hispanic population with a knack for having tons of kids, future large % of materrnity claims.... POOF!!! we gone.... thanks, BHO

Unicare was not a 2nd teir carrier.... I think they are the largest managed care provider in the country

 

[Crabcake Johnny]

It'll be true that after reform only the heavyweights will be able to play the game. 2nd tier carriers? Gone.

 

[somarco]

Unicare pulled out of GA years ago. Sold their block to Blue. The first renewals after the "merger" were killer.

 

[taterpeeler]

good to know... thanks

 

[TXINSURANCE]

To my knowledge Unicare was never in GA, not IFP anyhow - or if it was it was well before my time. They pulled out of most of VA as well.

The end of an innovative company, it is a shame - agent support was always unmatched. FYI peeler if you login to BCBS TX look under pending you will see a surprise.

 

[somarco]

Unicare sold their block to BCBSGA maybe 5 years ago, might be longer. Can't say how long they offered their product here. Their rates were very low, giving everyone fits, much like Coventry is today. Blue lost a lot of money on the Unicare block until they got through a couple of renewals.

Someone will eventually buy the Coventry block and will have the same results. When that happens, existing Coventry policyholders will go through shock as renewals start rolling in.

 

[ABC]

Unicare is owned by Wellpoint/Anthem

I don't know why this is a surprise that they are doing away with Unicare.

Back in the merger days Anthem was buying a hand full of companies. Then they merged with Wellpoint.

By doing a way with Unicare they have now cut the admin cost of operating another company. Same risk less admin.


I am really surprised it took this long

 

[fina]

i thought Unicare was a prudential company? or waas that Coventry??