Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

7/3/2013 (1 year ago)

Catholic Online (www.catholic.org)

UnitedHealth decision will force about 8,000 customers with individual policies to seek new coverage

UnitedHealth Group Inc., the nation's largest health insurer is leaving California's individual health insurance market. The decision marks the second major company to exit in advance of the tumultuous changes under the Affordable Care Act.

These decisions by both UnitedHealth and Aetna carry a price. Both cannot reenter California's individual market for five years after they leave, according to regulators.

These decisions by both UnitedHealth and Aetna carry a price. Both cannot reenter California's individual market for five years after they leave, according to regulators.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

7/3/2013 (1 year ago)

Published in Health

Keywords: UnitedHealth, Aetna, insurance, California, private insurance


LOS ANGELES, CA (Catholic Online) - UnitedHealth has notified state regulators it was leaving the state's individual market at the end of the year. The decision will necessitate about 8,000 customers to seek new coverage. Aetna Inc. last month, the nation's third-largest health insurer, made a similar move affecting about 50,000 existing policyholders.

Both companies say they promise to keep a major presence in California, and will focus on large and small employers.

Starting January 1, the federal healthcare law requires insurers to accept all individual applicants -- regardless of their medical history and provide a comprehensive set of benefits with limits on patients' out-of-pocket spending.

More national insurers aren't interested in playing by these new rules in states where their presence in the individual market is relatively small. More profits can be made by tending to the employer market.

"The business model of health insurance is fundamentally changing and some companies are willing and able to adapt," Sabrina Corlette, a research professor at Georgetown University's Center on Health Insurance Reforms says. "Given the limited market share those carriers had, UnitedHealth and Aetna have made the calculation that it required too much of an investment to change their strategy in California."

A spokeswoman for UnitedHealth said "our individual business in California has always been relatively small . [and] over the years; it has become more difficult to administer these plans in a cost-effective way for our members."

The news has sparked concerns on reduced competition on California consumers.

"I don't think this is a good result for consumers," California Insurance Commissioner Dave Jones said. "It means less choice, less competition and even more consolidation of the individual market with three big carriers."

Anthem Blue Cross, Kaiser Permanente and Blue Shield of California dominate the state's individual health market with a collective 87 percent market share, according to Citigroup data from 2011. UnitedHealth was a small player among individual policyholders with a two percent share. Aetna was slightly larger with a five percent market share.

These decisions by both UnitedHealth and Aetna carry a price. Both cannot reenter California's individual market for five years after they leave, according to regulators.

---


Pope Francis: end world hunger through 'Prayer and Action'


Copywriter 2015 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for May 2015
Universal:
That, rejecting the culture of indifference, we may care for our neighbours who suffer, especially the sick and the poor.
Evangelization: That Mary's intercession may help Christians in secularized cultures be ready to proclaim Jesus.


Rosaries, Crosses, Prayer Cards and more... by Catholic Shopping .com


Comments


More Health

Revolutionary! Robotic arm controlled by thought provides breakthrough for paralyzed Watch

Image of

By Catholic Online (NEWS CONSORTIUM)

An exciting new breakthrough in robotics may now enable the paralyzed to command helpmates with everyday activity. The breakthrough came in form of 34-year-old Erik Sorto, paralyzed from the neck down after being shot in the back 13 years ago. Thanks to a ... continue reading


Ancient Chinese plant 'thunder god vine' studied as miracle drug for obesity Watch

Image of In developed nations, where food is inexpensive and plentiful, obesity has been an ongoing problem. Obesity causes heart disease, diabetes and increases the risk for heart attack and stroke.

By Catholic Online (NEWS CONSORTIUM)

A traditional Chinese medicine known as "thunder god vine" is being heralded by some scientists as the new miracle drug in the war against obesity. Scientists in an article published in the medical journal Cell last week said an extract made from the plant ... continue reading


Brain reset: Scientists uncover unusual way to get rid of brain disorders Watch

Image of

By Atarah Haely (NEWS CONSORTIUM)

By implanting special cells that emit GABA into the brains of adult mice scientists found a way to cure certain brain disorders, like lazy eye. Initially an almost impossible endeavor, the experiment led a team of scientists to a way to reset the brain and basically ... continue reading


Health in the United States: Which cities are the healthiest? Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

The American College of Sports Medicine has recently released their 2015 American Fitness Index, naming the top three fittest and the least fit cities in the entire United States. MUNTINLUPA, PHILIPPINES (Catholic Online) -  Among the thousands of cities surveyed ... continue reading


Nebraska orders STATE OF EMERGENCY over H5N2 avian flu virus Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

A type of avian flu, and unfortunately the most lethal to hit the United States, has posed several concerns for farmers and scientists. So far, the H5N2 strain of the bird flu virus has already killed 15,000 turkeys in Minnesota alone. Now, over 33 million birds in 16 ... continue reading


Why a handshake just might save your life Watch

Image of Handshakes may be able to determine your risk for heart disease or other illnesses.

By Matt Waterson (NEWS CONSORTIUM)

Are you worried about a heart attack or stroke? Well there may be an easy way to tell if you are at greater risk for either of these diseases, are near death or seriously ill, and you don't need anything more than a hand and a partner. LOS ANGELES, CA (Catholic ... continue reading


Are you afraid of needles? Scientist believes he found way to reduce injection pain Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

A lot of people, the young and old alike, are really frightened of getting injections, even just the thought of it. The good news is that scientists have discovered a simple answer. MUNTINLUPA, PHILIPPINES (Catholic Online) - Spanish scientists believe that holding ... continue reading


Woman gives shocking birth to baby born with bladder outside of body Watch

Image of

By Hannah Raissa Marfil (NEWS CONSORTIUM)

Born with a rare congenital defect, Baby Lila underwent a unique surgery, shortly after she was born with her bladder outside the body. This defect was detected when the doctor couldn't find her bladder in a sonogram conducted during the 22-week prenatal appointment. ... continue reading


What do healthy people eat for breakfast? 11 healthy breakfast choices from dietitians and experts Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

What we eat in the mornings have an effect on our energy levels throughout the day. Here, registered dietitians, personal trainers, health editors and nutritionists, suggest healthy breakfasts for a healthy morning start, with some help from BuzzFeed. MUNTINLUPA, ... continue reading


NOT-SO HAPPY PILLS: Half a million patients die every year from psychiatric drugs Watch

Image of Professor Peter Gotzsche, research director at Denmark's Nordic Cochrane Center says the use of most antidepressants and dementia drugs could be discontinued without harm.

By Catholic Online (NEWS CONSORTIUM)

A Danish scientist has come forward to proclaim that mood enhancers, "happy pills" and other psychiatric drugs are frequently deadly - killing half a million people a year. Furthermore, he says that these medications are usually ineffective - not producing the ... continue reading


All Health News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Sirach 17:19-27
19 Their actions are all as plain as the sun to him, ... Read More

Psalm, Psalms 32:1-2, 5, 6, 7
1 [Of David Poem] How blessed are those whose offence ... Read More

Gospel, Mark 10:17-27
17 He was setting out on a journey when a man ran up, ... Read More

Saint of the Day

Saint of the Day for May 25th, 2015 Image

St. Mary Magdalene de Pazzi
May 25: It would be easy to concentrate on the mystical experiences God ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter