Second company to sell on state insurance exchange for 2019

Oklahomans who buy insurance through the federal exchange will have more choices in plans, but will have to wait to find out if that helps lower prices.

Medica, a Minnesota-based nonprofit insurance company, confirmed Monday that it will sell exchange plans in Oklahoma for 2019. Blue Cross Blue Shield of Oklahoma was the only insurer that participated in the market this year.

Exchange plans are an option for people who don’t get insurance through an employer or a government program. They are required to cover a list of essential health benefits, such as mental health and maternity care, under terms of the Affordable Care Act.

Medica plans to sell silver and gold plans in all 77 Oklahoma counties, and also will offer some bronze plans. Plans in a higher metal level have higher premiums, but require lower out-of-pocket costs if you need care.

“Buying health coverage for you and your family is important, and now with two health insurance carriers on the exchange, Oklahoma consumers have more options from which to choose what best suits their needs,” Oklahoma Insurance Commissioner John Doak said in a news release. “Having two insurers creates product choices and alternatives that are essential to our marketplace.”

Blue Cross issued a statement saying it “welcomes competition.”

“In 2017 and 2018, BCBSOK has been the only carrier offering coverage both on and off the exchange, reinforcing our commitment to provide quality, accessible health care coverage for all Oklahomans,” the statement said.

It isn’t clear yet what those plans will cost. The

Centers for Medicare and Medicaid won’t post Medica and Blue Cross’ proposed rates until August.

Geoff Bartsh, vice president of individual business at Medica, said Oklahoma was an attractive expansion opportunity because it has about 140,000 exchange customers served by only one company. Medica has expanded into Iowa, Nebraska and Kansas since 2016.

“Oklahoma is a market that we’ve had our eye on for a couple of years,” he said.

Another important factor is that Oklahoma’s market appears to have stabilized after large premium increases in recent years, Bartsh said. Customers who qualify for subsidies were cushioned from the increases, but they fell hard on shoppers who earned too much to get a tax credit.

Bartsh said providers have been welcoming and interested in partnering with the company to avoid giving patients conflicting information. The idea is that patients will

mostly hear from their provider’s office, and won’t have to mediate between the provider and the insurance.

“That willingness to work together ... has been encouraging,” he said.

Eventually, Medica may offer other types of coverage, like group plans, in Oklahoma’s metropolitan areas, but for now it’s focusing on introducing itself in the exchange market, Bartsh said.

Open enrollment for the exchange will run from Nov. 1 to Dec. 15 this year.