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). UnitedHealth Group Inc. announced this week it will drop out of government-organized health insurance markets in at least 16 states.
According to a statement from TDCI, UnitedHealthcare’s decision will affect around 15.5 percent of Tennessee’s total covered lives (40,879), and takes effect Jan. 1, 2017. The company announced this week that it plans to only offer coverage in a handful of states next year.
TDCI said UnitedHealthcare is currently the only insurer that has notified it of plans to withdraw from the exchange.
“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.
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