Today there is some bad news as it relates to consumers of Texas health insurance. Unicare, part of Wellpoint Health, one of the largest managed care companies in the country has decided to cease operations in Texas. According to the broker release this departure affects both the individual and group health insurance market effective Janurary 1st 2010.
Based on communications I have had with both Unicare and Blue Cross and Blue Shield of Texas there is no reason to panic as Blue Cross of Texas will absorb the currently active policies into their block of business meaning no consumer currently holding a Unicare policy will be without coverage.
There will be a transition period for current Unicare policy holders to accept the migration to a similar plan and rates with Blue Cross starting November 1st, 2009. Here at Peeler Insurance we are currently in aggressive contact with all our Unicare policy holders in an effort to assist in this transition. We expect this to be a very smooth process and should be compleated by the middle of November.
Also, late this afternoon Blue Cross released the breakdown of affected Unicare policy holders as it relates to monthly premium. The premiums remained almost the same as the consumers are currently paying and it appears on policies where deductibles did not match Blue Cross offered the lower deductibles. here is an example: some Unicare policies have deductibles of $2000 and $3000 where blue Cross does not offer those deductibles, they went with the next lowest deductible in their offer.
This news comes as a shock to all members of the health insurance community. For the lack of a better term, we were “blind-sided” by this action. Just late last week I was in contact with a Unicare executive who had invited me to a sales similar so they were caught off-guard as well.
For years Unicare offered the lowest premiums on coverage for Texas health insurance consumers, only in the last 2 years had they changed their offerings to a more rich in benefit policy as well as adjusting rates. I can only assume that continued years of low premiums finely caught up with them. This all ties into the current health care reform battle going on in congress and the supporters of the ‘public option” plan should understand and see that if health insurance companies are forced to compete with an option that has an unfair advantage of setting payment schedules to doctors and hospitals(medicare like) and insurance companies attempt to compete you will cripple and destroy ever insurance company in the United States. Let this event serve as the first bullet over the bow of the American free enterprise system as it relates to the protection of you and your family’s health coverage and choice. Unicare did exactly what every health insurance company will be forced to do after the passage of the current plans endorsed by the democrats, compete with extremely low premiums in an attempt to “buy” business like Unicare did back in the ‘90 and early 2000’s. Wake up America!
I support reform as much as anyone, I just support the right reform. I have an offical position on the reform debate here.
If you are a current Unicare policy holder and i’m not your agent of record, please, call me to help you through this or get a current Texas Health Insurance Quote. I will give you the same commitment to service that I have provided my clients for the past 16 years.
So to sum it all up, I feel this transition will be very smooth and easy. I know each and every Unicare client that has Peeler Insurance as their agent of record will be handled with “kid gloves”. My only focus is to insure the transition is snap.
God Speed Unicare!
Here is the release provided to the agents today:
October 28, 2009
Dear Broker:
UniCare has made a difficult strategic decision to exit commercial health insurance markets in Texas. Following a transition period, UniCare will no longer provide health benefits in Texas.
While UniCare continues to be financially secure, competitive pressures have made it increasingly difficult for us to maintain our high standards for excellent customer service and affordable, quality benefits that you expect from us.
UniCare is pleased to collaborate with Blue Cross and Blue Shield of Texas (BCBSTX), which will offer guaranteed replacement coverage to UniCare’s existing employer groups and individual policyholders. We believe that BCBSTX is best positioned to offer quality products, a high level of benefits and the superior customer service that our customers have come to expect. In addition, like UniCare, BCBSTX is a statewide plan that includes a comprehensive network of physicians and hospitals to choose from.
For UniCare customers who elect to transition their benefits to BCBSTX, UniCare will pay all claims for covered services rendered on or before December 31, 2009. BCBSTX will pay all claims for covered services from the time and date specified in their offer letter. There will be no break in coverage.
For UniCare customers who do not choose to transition their benefits to BCBSTX, UniCare will offer to renew their policy but only for a term ending on June 1, 2010. If the customers’ renewal date falls after June 1, 2010, UniCare will terminate coverage effective June 1, 2010 if permitted to do so by the terms of the policy, or otherwise continue to provide coverage up to the renewal date.
BCBSTX will be in contact with you soon to discuss an offer to transition your customers’ health benefits. In the meantime, if you have questions regarding UniCare’s decision, please use the below contact information:
- For questions regarding Large Group, contact your UniCare Account Manager or BCBSTX Sales Representative
- For questions regarding Small Group and Individual, contact your UniCare Agent Support team at 877-864-2468
If your customers also have dental, vision, group life or disability coverage through UniCare, the BCBSTX offer will also include that coverage.
Until UniCare has completed its exit from the market, we will continue to process claims as we do today and honor the commission structure that is in place.
We have enjoyed a productive working relationship with you and want to help make this transition as seamless as possible. BCBSTX looks forward to the opportunity to work with you to provide your customers with the same level of quality health care benefits and service that they received with UniCare.
Sincerely,
Lawrence G. Schreiber
Vice President and General Manager
UniCare
Attachment: Go here to view Frequently Asked Questions
