With UnitedHealthcare jumping in, health insurance exchanges will see more competition 

With UnitedHealthcare jumping in, health insurance exchanges will see more competition

Enlarge Photo Michael Nagle / Bloomberg

UnitedHealthcare has indicated it plans to greatly expand its participation in new health insurance exchanges next year. Owen Covington Reporter- Triad Business Journal Email  |  Twitter  |  Google+  |  LinkedIn

Minnesota-based UnitedHealth Group last week signaled it planned to greatly expand its participation in new health insurance exchanges, with its plans offered in up to two dozen additional states later this year.

The move by its UnitedHealthcare unit, the country's largest insurance company, could spell the way for even more insurers to offer plans on the federally run HealthCare.gov or state-run exchanges.

UnitedHealthGroup President and CEO Steven Hemsley told analysts that the approach is consistent with the company's plans to”take a prudent first-year position” before expanding in 2015 and 2016.

“The Congressional Budget Office estimates that more than 75 percent of the exchange market is yet to develop,” Hemsley said in an earnings call with analysts.”And we believe there will likely be meaningful membership activity in the market after the initial experience of this year and as second-year pricing is presented. So we plan to grow steadily from this point forward, advancing our participation in a measured manner in public exchanges in 2015, 2016 and beyond.”

North Carolina appears to be among this first wave of expansion for UnitedHealthcare, with the insurer filing a notice with the N.C. Department of Insurance in June, according to a report by The Charlotte Observer.

During the first enrollment period, North Carolinians saw a limited choice of plans on the exchange, the federally operated HealthCare.gov. Blue Cross and Blue Shield of North Carolina as the state's largest insurer offered plans statewide while Coventry Healthcare of the Carolinas offered policies in most major metro areas.

With UnitedHealthcare jumping in, health insurance exchanges will see more competition