Major insurer Anthem to withdraw from Ohio health care exchange
COLUMBUS - One of Ohio's largest health care providers is leaving the state's health care exchange, leaving residents in 18 counties without an insurance option.
The major insurer said Tuesday it is uncertain about the future of health care in the U.S., as Republicans in Washington work to overhaul the Affordable Care Act, better known as Obamacare. Republicans blamed Anthem's decision solely on Obamacare, saying the reticence from insurers across the country is evidence that the law must be repealed.
Anthem will pull out as of Jan. 1, 2018, so it won't be a choice for people buying individual insurance later this year. Currently, 44,000 Ohioans have Anthem coverage they purchased on the exchange.
In 18 counties, including Crawford, Muskingum and Coshocton, Anthem's pullout will leave no options for Ohioans who get insurance through the exchange. The 18 counties, which currently have 10,500 Anthem exchange customers, largely are concentrated in Appalachia and include some of the poorest in the state.
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Anthem said it was concerned it might lose subsidies that insurers receive to offset the costs of insuring lower-income individuals.
Last month, President Donald Trump reportedly told advisers he wanted to end these subsidies. House Republicans had sued former President Barack Obama's administration to block the subsidies paid to insurers. A judge ruled in favor of Republicans, and Obama appealed. Trump inherited the lawsuit and must decide what to do with the blocked subsidies.
The uncertainty, insurers say, has them worried they might have to pay for the subsidies themselves.
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“An increasing lack of overall predictability simply does not provide a sustainable path forward,” Anthem spokesman Jeff Blunt said in a statement.
This year, Ohio had 11 insurers on the exchange, down from 17 last year. Anthem was the first to leave for 2018, but others are weighing their decisions.
Gov. John Kasich has advocated against congressional Republicans' latest version of an Obamacare overhaul, mostly because it would end federal money for Medicaid expansion. But he has also said insurance markets are "slipping into crisis" under the current system.
On Tuesday, his administration released a statement blaming Anthem's decision on former President Barack Obama's health care law.
"Before the Affordable Care Act (ACA) Ohio had a very competitive health insurance market," Ohio's Insurance Department said Tuesday. "New regulations from ACA have driven some companies out of Ohio and made it harder for them to do business, both of which have driven up the cost of health insurance in Ohio. ...
"The best, long-term fix is to repeal the ACA and replace it with better regulations."
The Insurance Department is working on a solution for the Ohioans in 18 counties who would be without an individual insurance provider as of January, spokesman Chris Brock said. Some states, such as Alaska, have chipped in taxpayer money to lower premiums for a sole insurer.
Anthem will continue to offer insurance in Ohio through small and large employers. It also will continue to cover Ohioans who bought their own plans from Anthem before December 2013, Blunt said in a statement. In addition, the company offers an individual insurance plan to residents of Pike County that is not part of the exchange, and this plan will continue, Blunt said.
Washington correspondent Deirdre Shesgreen contributed to this report.
Correction: Based on misinformation from the state, a previous version of this story gave an incorrect figure for the number of Ohioans insured through Anthem and the exchange. Currently, 44,000 Ohioans have Anthem coverage they purchased on the exchange.