Amid a mulligan of sorts for a large state insurance exchange, an insurer with a new mission is using the old tactic of tapping brokers in a bid to vie in the big leagues.
Massachusetts' new cooperative health insurer, Minuteman Health, is preparing for the next state exchange open enrollment -- when about half-a-million consumers are going to be choosing new plans -- with a new agreement to use commissioned brokers.
In the next open enrollment about 450,000 Massachusetts residents are going to be applying for subsidized exchange insurance, after the collapse of the Health Connector marketplace technology in the Affordable Care Act's first enrollment wave. Less than 50,000 applicants were able to enroll in subsidized exchange plans, and Massachusetts had to take the emergency option of temporarily insuring 300,000 in Medicaid and keeping 100,000 in old Commonwealth Care plans.
This time will be different because the e-commerce website will work, Massachusetts government officials promise.
Minuteman Health sees the commissioned broker program largely as another option for consumers to learn about their choices and benefits, via a traditional, often face-to-face distribution channel. But it could also be a potential enrollment fallback in the event the exchange's website struggles.
Other insurers in other states used commissioned brokers last year, but Minuteman Health will be the first to use them in Massachusetts. The Health Connector is on board with the idea and recently approved the plan, said Minuteman CEO Tom Policelli.
"The Commonwealth has said that it is reaching out to more than 400,000 current members who need to submit a new application if they want to continue with coverage through the Commonwealth," Policelli said. "This begins on November 15th, and consumers will need all the resources and help they can get. Brokers can and do put forth significant effort as they assist consumers today, and compensating them for their work simply makes sense."
While Blue Cross and Blue Shield of Massachusetts claims more than half of the state's commercial market, health plans from 10 different insurers were available as choices in the first open enrollment, including Minuteman Health.
The cooperative plan, launched with federal loans authorized by the ACA, is hoping to find a niche and foothold in its home state, as well as in others.
Minuteman Health and another New England co-op, Maine Community Health Options, are descending on New Hampshire to sell 2015 exchange plans. Despite the fact that New Hampshire will have five exchange insurers for 2015 (compared to only one in the first open enrollment) Minuteman Health's leaders believe there is enough membership to be found.
"We think that competition among health care plans is going to be a very positive development for New Hampshire residents and businesses," said Policelli, a former Cigna and UnitedHealth Group manager. "We recognize that New Hampshire is a different market than Massachusetts, and we plan to bring the right solutions." While the two states are differents, the insurer will be using the broker program in the Granite State too.