time/assurant and consumer mutual insurance of michigan left the michigan exchange at the end of 2015. consumer mutual was an aca-created cooperative that insured 28,000 members in 2015. they announced on november 2, the day after the start of the open enrollment for 2016 plans: that they would not sell policies on the michigan exchange in 2016, and that their existing exchange members would have to switch to a different carrier by 2016.
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according to crain’s detroit business, just over a fifth of consumer mutual members purchased their plans on the exchange in 2015, and at that time, there was a chance that the remaining 80 percent of members could keep its plans, and the cooperative continues to offer plans outside of the exchange.
But that hope was short lived. by November 4, the announcement on the consumer mutual website indicated that all members, including those who had purchased their plans off the exchange, would have to seek new coverage for 2016, and that the cooperative would close operations by the end of the year. of 2015.
consumers mutual enrolled just 29 percent of its projected membership in 2014 and had a net loss of $16 million in the first year of operations. they were the 12th cooperative (of 23) to fail, and were among the majority whose closure was attributed to the fact that the federal government only paid 12.6 percent of risk broker payments that were owed to carriers based on losses in 2014.
after consumer mutual folded and time went out of business, michigan exchange had 14 carriers offering coverage in 2016. that dropped to ten by 2017 (although some of the decline was due to ppo entities leaving the exchange, while its sister hmo companies remained on the exchange). The number of exchange insurers dropped to eight in 2018, but increased to nine in 2019 when Oscar joined the exchange in Michigan. All nine insurers have submitted plans to remain on the exchange by 2020. Insurer participation tends to be strongest in the southeastern part of the state and least strong in upper Michigan.
unitedhealthcare exited the individual market in michigan in late 2016, as did most states where they offered plans on the exchange in 2016.
the harbor health plan went off the exchange at the end of 2016. they continued to offer a bronze plan off the exchange in 2017.
The priority health insurance company, which offered ppo and pos plans in 2016, moved to offering only small group plans in 2017, and only off-exchange. but priority health, which is a separate entity, has continued to offer individual and small group plans, on and off the exchange.
health alliance also abandoned its ppos, continuing to offer more than 45 personal alliance hmo plans, on and off the stock market (ppos were offered through the alliance’s health and life insurance carrier, which is a subsidiary of health alliance; health alliance and life insurance company plans are no longer offered on the michigan exchange). blue cross blue shield of michigan was the only company still offering ppo plans through the michigan exchange in 2017.
humana abandoned its individual ppo plans in michigan at the end of 2016, but that only affected the off-exchange market, as humana’s publicly traded plans were already hmos.
humana exited the individual market entirely at the end of 2017, however, across the country. In 2017, the human coverage area included most of southeastern Michigan, as well as Kalamazoo County and Kent County.
health alliance plan (hap) announced in september 2017 that it would not offer plans on the michigan exchange for 2018, although its off-exchange plans continued to be available. hap’s exit announcement noted that 9,100 members would have to find new plans. their rate filing from early summer (when they were still planning to go on the exchange) said it would affect 17,000 members, but those with off-exchange coverage were able to keep their plans for 2018 if they wanted to (hap had 650k total members on 2017, virtually all of whom had medicare, medicaid, or employer-sponsored coverage and thus were completely unaffected by the insurer’s decision to exit the exchange).
hap noted in its announcement that the uncertainty caused by the trump administration and the Republican-led congress played a major role in its decision to exit the exchange. They explained that the decision was based on “many uncertainties related to premium stabilization programs, the application of the individual mandate, and not knowing whether the federal government will continue to fund cost-sharing reductions (csrs).”
oscar health joined the exchange in michigan for 2019 (in wayne, macomb, oakland, st. claire, livingston and washtenaw counties), and all nine insurers continued to offer plans on the exchange for 2020 and 2021.
For 2022, Total Health Care has merged with Priority Health, but two new insurers are offering plans on the exchange: US Health and Life is new for 2022, and UnitedHealthcare is back after a five-year hiatus. so there are a total of ten carriers offering exchange plans in michigan for 2022. the two non-exchange-only carriers (alliance health and life and health alliance plan) continue to offer non-exchange plans for 2022.