Fort Wayne-based Physicians Health Plan of Northern Indiana Inc. is backing out of Indiana’s individual health insurance marketplace and cutting its own individual product line at the end of the year. The company blames several factors including the Affordable Care Act.
Other reasons include anomalies between state mandates, federal risk-sharing provisions and uncertainty about Obamacare. The company says the products lines are "unsustainable" and it doesn’t believe the market will fix itself soon.
Chief Executive Officer Michael Cahill says "we are disappointed that we feel forced to this difficult decision, but we had to keep in mind that we do have a responsibility to the community and the beneficiaries we serve as a not for profit health insurer. By withdrawing from the individual market today, PHP can take the millions of dollars in losses we would incur and put that back into community efforts we’ve been supporting since our founding in 1983."
PHP says it sees opportunity in other areas, including with companies who will be federally-required to end their transitional insurance plans by the end of 2017.
PHP emphasizes that it "remains extremely well capitalized and on solid financial ground" and says the decision will help it better focus on serving businesses, employers and brokers.
You can read more about the decision below: