Another Insurer Withdrawals from ACA Marketplaces
New Mexican insurer Presbyterian Health Plan announces withdrawal from their ACA marketplace.
Presbyterian Health Plan is the latest insurer to drop out of the Affordable Care Act (ACA) health insurance exchange in New Mexico.
Like many other insurers, they found that enrollees were visiting physicians more and had higher costs than expected. The insurer is predicting a loss of $26 million this year, according to the Santa Fe New Mexican.
Presbyterian has 26,000 ACA enrollees, and approximately 10,000 individuals who receive subsidies will need to find new coverage. Approximately 70% of enrollees in any of the New Mexico plans receive subsidies that reduce monthly premiums by more than half, the Santa Fe New Mexican reported.
Like other insurers who have also withdrawn from marketplaces, these individuals will be covered until the end of the year. The insurers originally put in a request to increase premiums by 35%, but later decided to withdraw from the marketplace plans.
They will continue to offer plans to Medicare, Medicaid, and employers instead, and has proposed a smaller premium increase.
