UnitedHealthcare to drop individual health insurance plans

June 02--Health insurance carrier UnitedHealthcare will stop offering individual plans beginning in 2017, a local health underwriter told the Times Record News.

The company sent two emails to underwriters Tuesday, one to announce individual off-exchange health insurance plans would not be offered in 2017, and another announcing the same of individual plans on the federal marketplace where people could buy insurance.

"After a detailed review of our UnitedHealthcare Life Insurance Company (UHCLIC) Off-Exchange plans, we have determined that we will not offer UHCLIC individual Off-Exchange plans in 2017 except in the state of Utah," the email said. "These changes reflect our long-standing goal to offer consumers products that are both affordable and financially sustainable."

People with individual plans through UH will continue to have coverage through Dec. 31. Small- and large-group plans with UnitedHealthcare will not be affected by the change.

UnitedHealthcare is the only insurance carrier in the area in 2016 that provides plans that allows people to keep their physician. Blue Cross Blue Shield of Texas decided not to offer Preferred Provider Organization plans that would have done the same thing, but the carrier decided it would only offer Health Maintenance Organization plans.

With United Healthcare's decision, area residents will only have the option of the BCBSTX HMO plans for individuals, meaning several thousands of people will be looking at new options.

Kelly Fristoe, a regional vice president for the National Association of Health Underwriters and underwriter at Financial Partners, said all is not lost for people who will lose their UnitedHealthcare EPO plan.

"There are going to be solutions for people," he said. "It's not like they're going to be left out there in the cold with no solution. But it's probably going to be more important now than ever for people to not go this alone."

Fristoe said professional insurance underwriters in Wichita Falls and the surrounding area can help people make the best financial decision, but that can only happen if they seek the help. Some options, he said, could include determining if the possibility exists to create an employer-based plan so people would be on a group plan; checking into health insurance ministries, where the cost of health care is shared; short-term temporary policies, which aren't recognized as qualified insurance plans and the person would have to pay a federal penalty; or not have any insurance at all and pay the federal penalty.

Fristoe said another possibility is another carrier deciding to come into the area to provide another option for consumers. He said the announcement came early enough that plenty of time is available to help people determine the best route for them.

Open enrollment for health insurance coverage in 2017 begins Nov. 1.

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