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Move to Reduce Rates Is Evidence New Insurance Market Is Working

Wednesday, June 26, 2013

Move to Reduce Rates Is Evidence New Insurance Market Is Working

Small businesses will see better prices, more competition.
The Executive Director of the District’s new health insurance marketplace today praised the decision by United HealthCare to reduce its proposed rates for policies sold to small businesses by 12 percent as evidence that greater competition and transparency will drive prices down.
 
“Creating one big marketplace where small businesses can review, compare, and buy the coverage that best meets their needs and budgets makes insurance companies compete based on price and quality. For the first time, small businesses have the same clout that their larger competitors have had,” said Mila Kofman, J.D. executive director of the D.C. Health Benefit Exchange. 
 
Earlier this month, the D.C. City Council unanimously approved legislation creating a marketplace for individuals, families, and small businesses to shop, compare, and enroll in high-quality health plans. DC Health Link, the District’s new online insurance market, will open for enrollment on October 1 with coverage effective January 1, 2014.
 
“I commend United HealthCare for their leadership in reducing prices for small businesses in the District,” said Mayor Vincent C. Gray. “We are a national leader in securing quality health coverage for all of our residents and this action reinforces the importance of fully implementing President Obama’s health care law.”
 
“I am pleased to see our investment in DC Health Link is paying off for small business owners and their employees across the District,” said Councilmember Yvette Alexander (Ward 7), chair of the Committee on Health. “This is very good news for everyone who lives and works in our city.”