Colorado Access, a 501(c)4 nonprofit health plan, has confirmed that its subsidiary, New Health Ventures (dba Access Health Colorado), is not enrolling new members for 2016. The health plan will also cease offering Medicare Advantage plans next year, although its Medicaid business will not be affected.
As of first quarter 2015, Colorado Access had more than 30,000 individual enrollees, according to AIS’s Commercial Health Plan Market Metrics. These members’ benefits will be covered through Dec. 31, 2015.
The insurer cited changes to rate reimbursements and risk scoring, low membership levels, high healthcare costs and the inability to continue subsidizing financial losses in Medicare and commercial businesses as reasons for its restructuring. “Smaller health insurance carriers without significant cash reserves are finding it difficult to compete with large heavily funded carriers, especially in highly competitive markets like Colorado. You’re seeing this nationwide and it’s also true for us,” said Colorado Access President and CEO Marshall Thomas.
AIS has removed all relevant records from the databases affected by the restructuring.
© 2015 by Atlantic Information Services, Inc.