Dive Brief:
- South Carolina healthcare officials are raising the alarm that the state's ACA health insurance marketplace is approaching the possibility of collapse, the Post and Courier reported.
- Many of the state's counties are faced with an exchange business monopoly by BlueCross BlueShield - the largest private insurer in the state - rather than a competitive marketplace.
- The offerings have only gotten narrower, with the notable closure in 2015 of the popular Consumers’ Choice Health Plan and the slated 2017 exit of United Healthcare, which currently serves five counties in the state.
Dive Insight:
Some state health officials have suggested the current system is headed toward imminent collapse unless it is reformed.
“The way it’s going right now, it’s probably going to implode in the next year or two,” the Post and Courier quoted Dr. Pat Cawley, CEO of Medical University Hospital.
Furthermore, it's unclear whether BlueCross BlueShield of South Carolina can be expected to remain long term; spokeswoman Patti Embry Tautenhan did not reveal whether its ACA plans in the state are profitable or how long the company expects to continue to offer them.
Even so, South Carolina is not in an unusual position. A previous report has found several states and counties around the U.S. that have only one ACA carrier, and approximately 650 counties will have just one option in 2017 compared to 225 in 2016.
That doesn't necessarily worry some experts. Vox's Sarajh Kliff has suggested that if any marketplace is left empty, some other insurer is likely to come in and set new rates at worthwhile level in its own new monopoly--filling the void, but not necessarily fulfilling the intent of the marketplace.