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Morning Briefing

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Wednesday, Jul 27 2016

Full Issue

Bucking The Current Trend, Cigna Decides To Expand Into ACA Markets

In other health law news, Iowa's largest insurer says its accountable care organization contracts have saved $35 million in costs last year, a study finds that Covered California policyholders are being rejected by doctors and the court case that could spell trouble for insurers.

The Hill: Insurer Cigna Expanding ObamaCare Presence

The insurer Cigna is expanding into a few new ObamaCare markets, a countervailing force to some recent high profile exits by insurers. Cigna, one of the nation’s largest health insurers, said Tuesday that it has filed to offer insurance on the ObamaCare marketplaces next year in Chicago, the Raleigh/Durham area of North Carolina, as well as Northern Virginia and Richmond. (Sullivan, 7/26)

Chicago Tribune: Big News For Chicago-Area Obamacare Insurance Exchange: Cigna Seeks To Join

One of the nation's largest health insurance companies plans to enter the Obamacare marketplace in the Chicago area for the first time, bringing new competition as other insurers exit or go out of business. The Tribune has confirmed that Cigna, based in Bloomfield, Conn., has filed plans to sell health policies to individuals and families who purchase their own coverage in the individual market. If the plans are approved by Illinois regulators, Cigna will start selling policies Nov. 1, when enrollment for 2017 Obamacare coverage opens. (Sachdev, 7/26)

The Des Moines Register: Wellmark Sees $35 Million Savings From ACO Contracts

Iowa’s largest health insurer says it is seeing success from its efforts to reward hospitals and clinics for providing high quality care. Wellmark Blue Cross & Blue Shield announced Tuesday that its accountable care organization contracts with 13 hospital and clinic systems saved $35 million in health care costs last year. Under such arrangements, hospitals and clinics are paid for keeping patients well, instead of just for ordering more tests and providing more treatments. (Leys, 7/26)

Los Angeles Times: Study: Covered California Health Insurance Coverage Doesn't Guarantee Doctor Access

The recent announcement that Covered California premiums will rise by double digits in 2017 is only part of the challenge for the nation’s largest health exchange. A newly released study found that 4.38% of Covered California policyholders enrolled in Blue Shield or Blue Cross plans were rejected by doctors who were supposedly accepting their insurance, compared with 1.41% for people with the same plans purchased outside the exchange. (Sisson, 7/27)

Morning Consult: One Court Case That Could Really Hurt Obamacare Insurers

There’s been a lot of bad news about rising Obamacare exchange premiums over the past few months. But things could get much worse for insurers (and consumers) if a court ruling brought by House Republicans against the administration prevails. At issue in House v. Burwell is whether the administration has been illegally paying cost-sharing reduction subsidies to insurers. This issue was also the subject of a Republican House investigation, which resulted in a recent report concluding that the administration knowingly made the payments without a congressional appropriation, which is illegal. (Owens, 7/26)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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