CareConnect will not write or renew individual policies in 2018 as part of its exit from the state’s health insurance market.
The insurer, a subsidiary of Northwell Health, announced on Sept. 29 that it would not write or renew individual policies for calendar year 2018. CareConnect will also stop writing and renewing group policies as of Nov. 30.
In its announcement, the insurer said it would honor all existing health insurance policies through their remaining terms, including group policies that continue into 2018, and will stand behind all medically necessary claims for covered services incurred during that time.
Long Island-based Northwell Health announced in August that it would shut down CareConnect, which was the state’s first provider-owned commercial health plan. The company’s first plans launched in 2013, following implementation of the Affordable Care Act. The insurer covered about 125,000 New Yorkers, but said a costly provision in the Affordable Care Act and policy uncertainty in Washington made its business model unsustainable.
Last week’s announcement is part of a plan between the insurer and the state Department of Financial Services to wind down CareConnect’s operations.
CareConnect customers seeking replacement coverage on the individual market can begin shopping in November through the New York State of Health marketplace for 2018 coverage. Small-business CareConnect customers can enroll through Nov. 15 on the state’s Small Business Marketplace for coverage that begins on Dec. 1.
