Texas insurer Scott & White Health Plan latest to leave Obamacare market
Gold, silver and selected bronze benefit plans will no longer be available, effective 2017, the insurer said.
The provider-run Scott & White Health Plan is the latest to leave the exchange market after alerting members on its website that it will no longer offer individual and family plans on the Obamacare markets.
Effective for 2017, gold, silver and selected bronze benefit plans will no longer be available through either the Scott & White Health Plan or the Insurance Company of Scott & White, the company said.
The market for the individual marketplace plans carries higher risk than other plans, the insurer said.
"Like many other health insurers, we have determined that we cannot currently serve Marketplace plans on an effective and financially sustainable basis," Scott & White said in a statement.
[Also: Obamacare marketplace shakeout rocks Arizona, Southeast]
Scott & White Health Plan is run by the Dallas-based Baylor Scott & White Health system.
The insurer is the latest to drop plans available through the Affordable Care Act due to financial losses and a large number of high risk members. The losses are not being properly offset by the government's risk adjustment program that is meant to help with high cost claims, insurers have said.
Citing financial losses, Aetna this week announced it was leaving the marketplace in all but four states.
Earlier this year, the nation's largest insurer, UnitedHealth Group, drew back on its exchange product in numerous states.
[Also: Aetna to exit Obamacare market in all but 4 states]
The announcements come ahead of the fourth year of open enrollment which starts November 1 and runs through January 31, 2017.
Scott & White Health Plan told consumers they could select another marketplace plan or sign up for off-marketplace coverage through their select bronze, HMO individual and family plans. The Insurance Company of Scott & White will offer selected bronze off-marketplace PPO plans, it said.
It also reminded members that federal subsidies are not available in off-marketplace plans.
"If you do not enroll in a health plan by January 31, 2017, your options for health coverage in the coming year may be limited," the insurer said.
Twitter: @SusanJMorse
