Dive Brief:
- The two carriers slated to participate in Connecticut's health insurance exchange next year, Anthem and ConnectiCare, might both eliminate their commissions to brokers next year.
- If commissions are eliminated or reduced, many brokers in the state plan to stop selling exchange plans, according to The Connecticut Mirror.
- With brokers having facilitated about 40% of exchange plans previously sold in the state, their exit could have a substantial impact on 2017 ACA plan enrollment and exchange sustainability.
Dive Insight:
The unresolved matter around whether commissions will end and how many brokers will walk is hitting Connecticut's state exchange, Access Health, while it was already reeling from the loss of its two other carriers, HealthyCT and United Healthcare. HealthyCT, one of the co-ops lucky to survive 2015, was recently toppled by its requirement to pay $13.4 million into the federal risk adjustment program. UnitedHealth, meanwhile, announced earlier this year it will remain in just a "handful" of ACA markets next year.
Also already stressing the system are the high premium increases currently under review for remaining Anthem (seeking an average increase of 26.8% on its Access health plans) and ConnectiCare (seeking an average 14.3% increase on its exchange plans.)
Anthem has already indicated it will eliminate commissions on all exchanges where it offers plans, as have several other major carriers around the U.S., while ConnectiCare said it will decide after rate reviews are finalized in September, the Mirror reported. So far rates are set for just a few states including New York, which just announced individual premiums in the state will increase by 16.6%.
Brokers noted commissions have already been low, typically at $10 to $20 per enrollee, bringing in just "pennies on the dollar" for the work performed.
The loss of carriers participating in exchanges around the U.S., and potentially brokers as well, has some analysts and players concerned about the potential for an unsustainable downward spiral while others remain optimistic that the government and carriers alike will continue to adapt.
The issue is “difficult” for the exchange, Access Health CEO Jim Wadleigh told the Mirror, suggesting there would be negative impacts if broker commissions are eliminated. “There’s confusion and uncertainty with (brokers). We’re really not sure how to proceed at this point.”