TDCI: UnitedHealthcare Announces Withdrawal from FFM
NASHVILLE – The Tennessee Department of Commerce & Insurance (TDCI) is notifying consumers that UnitedHealthcare Insurance Company will no longer offer coverage to Tennessee consumers through the Federally Facilitated Marketplace (FFM).
The company recently notified the Department about its intent. Today, the company said they plan to only offer coverage in a handful of states next year. UnitedHealthcare is currently the only insurer that has notified the Department of plans to withdraw from the exchange. The change, which will affect around 15.5 percent of Tennessee’s total covered lives (40,879), takes effect Jan. 1, 2017.
“We’re disappointed about UnitedHealthcare’s decision to withdraw from the marketplace after joining last fall because of how the departure will impact consumers,” said TDCI Commissioner Julie Mix McPeak. “However, we understand that the company’s decision to withdraw is a business decision. The decision seems more national in scope than Tennessee-specific as the company has less than four months’ experience with Tennessee’s exchange marketplace. Thankfully, we have companies with strong ties to Tennessee still offering products across the state, both on the marketplace and off.”
Consumers who purchased UnitedHealthcare through the exchange last year must switch to another insurer to continue their coverage when the next Open Enrollment period begins Nov. 1.
UnitedHealthcare must give notice at least 180 days before the termination of its coverage.