People in Maricopa County looking to purchase insurance on the federal exchange may only have one provider to choose from in November. Phoenix Health Plans told the state department of insurance this week it would not be part of the marketplace.
That leaves only one provider, Cigna, for the pool of about 120,000 people in the county. Last time, it was eight providers. Phoenix Health Plans had originally proposed increasing its rates by about 120 percent before deciding to pull out.
“We are in new territory. We have never had this situation," Stephen Briggs with the state’s Department of Insurance said.
He said it is possible other providers will come forward after the state reviews them. But so far, 14 of the state’s 15 counties will only have one insurer. Pinal County will have none. Many of the deadlines for entering the exchange have already passed, but the department is going to do all it can to provide options
“The director will use every means at her disposal to be flexible," Briggs said.
But this raises a host of questions – can one insurer even handle all the new customers?
Jim Hammond, who publishes the Hertel Report, said he believes Cigna is up to the task. There may have been too much risk, too many sick people for Phoenix Health Plans, but Cigna already manages Medicare and commercial plans in Arizona, he said,
“They will have a lot of people to spread the risk and attract younger people into the pool so it might be good for Cigna.”
Hammond said other carriers may pop up before November. Still, this is the only major urban county in the country he knows of that could only have one provider.
