Cover Florida Goes Belly Up

Crabcake Johnny

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For those of you who didn't know, Cover Florida was the state's answer to a high risk pool. Instead of the state offering coverage, six health insurance carriers offered guaranteed issue plans.

That is no more.

Cover Florida health plan program getting scrapped | South Florida Business Journal

"With Blue Cross and Blue Shield of Florida’s decision to stop enrolling new members in its Cover Florida plan, all six insurers that were selected by the state to offer the plans starting in 2009 have withdrawn. Florida Agency for Health Care Administration spokeswoman Shelisha Coleman said the state has taken down the Cover Florida website, as no insurers want to participate.

It only took two years for Cover Florida to collapse."
 
Our state pulled their high risk pool also when HCR passed, said they'd just let the federal high risk pool handle it.

I'm not sure in Florida, but in TN it was about basically choosing to put the cost on the feds instead of paying at state level.
 
I agree, but if you're following all of the news, the largest concern lately is all state exchanges will collapse due to adverse selection.

Remember, it's written into the PPCA legisliation that carriers are allowed to offer plans outside of the exchanges. The NAIC's current fear is those plans, still underwritten, will entice to healthy with low rates and options while the sick have to go into that state's exchange.

They are currently working on working an outline for states to follow regarding regulations for carriers both inside and outside of the exchange. There is currently no federal legislation regarding non-exchange coverage.

But there's no winning here. States that implement tough rules regarding non-exchange plans will see carriers pulling out of that market. States with lax rules on non-exchange plans will end up seeing their exchanges collapse.

We have a front row seat and 2104 is rolling up.
 
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