Health insurer Centene Corp. announced Tuesday it plans to expand into the Obamacare exchanges even as other insurers exit and despite the uncertainty ahead as Republicans work to repeal and replace portions of the healthcare law.
Centene said in a release it expects to sell plans on the Obamacare exchange in Kansas, Missouri and Nevada in 2018. The company also plans to expand its presence in states where it already sells plans, including in Florida, Georgia, Indiana, Ohio, Texas and Washington.
“Centene recognizes there is uncertainty of new healthcare legislation, but we are well positioned to continue providing accessible, high quality and culturally sensitive healthcare services,” said Michael Neidorff, the company’s CEO, in a statement.
The exchanges allow low- and middle-income people to purchase health insurance that is subsidized by the federal government. Centene is known for its participation in the Medicaid program, which largely covers low-income people, and the company covered 1.2 million people in exchange plans as of March 31.
Amid uncertainty about the future of Obamacare, several insurers have said they plan to exit states for next year unless circumstances change. Aetna, Humana and UnitedHealth Group are among those who have either completely pulled out of the exchange business or have only a few markets left. Anthem recently announced it would exit the exchange in Ohio, leaving a large number of counties with only one or no insurer for coverage.
Insurers in large part have said that they have lost money on the exchanges, where a disproportionate number of sicker, older enrollees have signed up. They also face uncertainty about whether the Trump administration will continue to pay out billions of dollars in cost-sharing reduction subsidies that help them offer lower out-of-pocket medical expences to customers. Insurers also have said they are nervous about whether the administration will enforce the individual mandate, which obligates people to pay a penalty if they do not have healthcare coverage.
The exodus from insurers leaves people with fewer options for plans, which raises prices on policies and limits medical providers.
