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Blaming the "continued volatility" in the market, health insurer Anthem Blue Cross Blue Shield has announced that it is dropping out of nearly most of Nevada next year.
Earlier in June, the company announced that it is exiting the Affordable Care Act individual plan business in Ohio, Wisconsin and Indiana at the end of the year.
Anthem has been serving consumers in the individual market in Nevada for decades. However, for the next year the company has filed to offer on-exchange HMO (Health Maintenance Organization) plans in three countries only, which include — Clark, Nye and Washoe.
The company stated that in addition, a catastrophic medical plan will be offered off-exchange statewide. It noted that this decision does not affect those who have employer based insurance or individuals enrolled in “grandfathered” plans (plans purchased before March 2010).
Citing the reason for withdrawal, the insurer said: "Nevada individual market remains volatile, making planning and pricing for ACA-compliant health plans increasingly difficult due to a shrinking and deteriorating individual market, as well as continual changes and uncertainty in federal operations, rules and guidance, including cost sharing reduction subsidies and the restoration of taxes on fully insured coverage.
"As a result of the continued volatility in the market, Anthem has made some adjustments to our 2018 Individual plans in Nevada," it added. "As the Individual marketplace continues to evolve, Anthem will continue to advocate solutions that will stabilize the market to allow us to expand to a more robust presence in the future."
Explaining its decision, Anthem further stated that "a stable insurance market is dependent on products that create value for consumers through the broad spreading of risk and a known set of conditions upon which rates can be developed. However, the Nevada individual market remains volatile.”
Anthem Blue Cross Blue Shield, Nevada, Obamacare, US