UnitedHealthcare to leave some Iowa markets in 2017
The Iowa Insurance Division was recently notified that UnitedHealthcare of the Midlands, Inc., UnitedHealthcare Life Insurance Company, and UnitedHealthcare Insurance Company will no longer provide certain coverages in Iowa for 2017.
Iowa consumers should be aware that the companies will no longer offer individual coverage on or off the marketplace. Coverage for small employers will not be offered on the SHOP Exchange.
“We’re obviously disappointed about UnitedHealthcare’s decision as thousands of Iowans are now forced to make changes,” Iowa Insurance Commissioner Nick Gerhart said. “However we understand that the company’s decision to withdraw is a business decision. The decision seems more national in scope, but thankfully we anticipate having other offerings around the state.”
This decision will impact approximately 8,700 individuals insured by UnitedHealthCare of the Midlands, Inc. and 328 individuals insured by UnitedHealthcare Life Insurance Company. UnitedHealthcare Insurance Company will not continue its participation in the SHOP Exchange, however, the carrier will continue to offer small group products outside of the SHOP Exchange in Iowa.
Consumers impacted by this decision will receive notice from the carrier and must switch to another insurer to continue their coverage for 2017 when the next Open Enrollment period begins November 1, 2016.