Farmington insurer ConnectiCare Benefits Inc. is bowing out of the small business health insurance exchange.
The subsidiary of ConnectiCare Inc. originally said it would offer insurance coverage in the federally mandated SHOP exchange, even submitting plan proposals and rates for approval with the Connecticut Insurance Department.
Late Friday, however, the company said it had a change of heart, announcing it will only offer insurance coverage in the individual market instead.
The SHOP exchange is being set up in Connecticut as part of the Affordable Care Act. It will allow small businesses with fewer than 50 employees to buy insurance through an online marketplace.
“ConnectiCare will continue to deliver the best-in-class products and services that we always have provided, and we believe that we should focus on the needs of individual purchasers on the Exchange,” said Michael Wise, ConnectiCare’s president. “We remain committed to the success of Access Health CT, and are excited about partnering with Access Health CT on the individual Exchange in 2014.”
In May, ConnectiCare Benefits Inc. proposed small group and individual insurance plans to be offered in the exchange with an average price of $716 and $397 per member per month respectively.
The company, however, expressed concern that many of the federal regulations, which continue to be issued, are “vague, complex and in some cases contradictory,” which could result in the insurer withdrawing or changing parts of its rate filing.
