Insurer Drops Individual Coverage In The Northwest

The following email was received this week by the employees of a large insurer located in the Northwest. Specific details were removed to protect individual identities.

Subject: Changes in Individual Underwriting due to ACA implementation

We have known for some time that beginning in 2014, new rules will end medical underwriting and pre-existing conditions exclusions for the Individual line of business. Medical underwriting is still needed in other areas. This applies only to the Individual line of business.

We appreciate the patience of current Individual Underwriting staff as we have worked to identify any new needs posed by ACA regulations.

Today, we notified Individual Underwriting staff that their positions will end on Dec. 31, 2013. At the same time, we were pleased to announce that, in response to market needs, we have created 22 new positions in Individual Underwriting for eligibility verification and three to five new positions in a new Member Services group called Medical Risk Management (MRM). The MRM group will support the Affordable Care Act (ACA) risk adjustment process and help coordinate referrals to care management programs.

New position descriptions have been created to meet the unique needs of each group and all affected underwriting staff have been encouraged to apply.

As is common practice, those employees who leave as a result of the discontinuation of Individual Medical Underwriting will receive severance packages and professional assistance with career transition training.

Please extend your support to our Individual Underwriting colleagues during this time of change. We truly appreciate the dedication and contributions of all of our employees in the service of our members and our Cause.

Note that they don’t state the number of jobs lost while being pleased at the new jobs created (sound familiar?) – word is that 40 folks are being turfed in the Individual Plan department.

More evidence that if you like your current health plan, Obama lied – you can’t keep it.

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