Aetna, a health insurance company currently serving 46 million people nationwide, is the second coverage provider to leave America's Health Insurance Plans (AHIP) in the last six months. In June 2015, UnitedHealth Group opted to bow out of the trade association that represents the health insurance industry saying the organization no longer represented the best interests of UnitedHealth or its customers, according to Reuters. Now that Aetna has also announced its departure, will other coverage vendors follow suit? What does this mean for human resources teams and their employees benefits? Let's take a closer look:
Insurer consolidations could have an effect
Now that two of the top insurers in the industry have decided not to renew their membership, there is speculation that other leaders could soon do the same. This is an even bigger reality due to the possible combinations of coverage providers within the organization. Although Aetna has left, it's working to consolidate with Humana – still a AHIP member – at some point in the near future, according to Modern Healthcare. Cigna and Anthem, two current AHIP insurers and top providers in the industry, also have a pending merger underway.
Due to the AHIP's recent turn toward advocating for some of its smaller regional members, larger firms have bowed out citing misaligned positions. Since they're no longer in the organization, these providers now have the freedom, ability and money to lobby on their own behalf, according to Healthcare Dive. Only time will tell if the remaining insurance giants will also leave the AHIP to join already-existing associations outside of the lobbying group. One example is the Better Medicare Alliance, formed by Aetna, Humana and UnitedHealth Group to focus on Medicare Advantage.
"Companies must remain aware of AHIP news to understand how changes will affect their benefits."
A new AHIP leader may impact benefits offerings
Aetna and UnitedHealth Group's withdrawal from AHIP membership isn't the only large change the organization has experienced in recent months. Former leader Karen Ignagni announced her resignation in May 2015 to lead EnblemHealth. Marilyn Tavenner, formerly an administrator of the Centers for Medicare and Medicaid Services assumed the position, a somewhat controversial choice for the lobbying group. Due to Tavenner's role in an agency that oversees ObamaCare, the AHIP has been seen by some insurance providers as having a one-track mind toward advancing that legislation, The HIll said.
Company leaders across the country have to keep this information in mind when selecting a healthcare provider for their employee benefits. It's impossible to predict what will happen with continuing government action toward the Affordable Care Act. However, HR teams that are aware of AHIP news – including that of departures – will be better able to choose an insurer that suits their business's needs. Furthermore, remaining cognizant of the lobbying of independent groups, including the Better Medicare Alliance, and formal organizations, like the AHIP, will help executives remain current on healthcare regulations and requirements.