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September 25, 2014 at 03:01 AM
A company that has been trying to encourage workers to use high-value care to cut overall employer health spending says it will be withdrawing its products from the market Jan. 1, 2015.
The company, SeeChange Health Insurance, has said in the past that it has been managing coverage based on value-based insurance design (VBID) principles for employer plans with 1.4 million enrollees in California and Colorado.
The California Department of Insurance has issued a cease-and-desist order against SeeChange Health Insurance because of concerns about its finances, and the company’s ability to offer health coverage will end Dec. 31, 2014, according to officials at the Colorado Division of Insurance.
SeeChange stopped new policies Aug. 21, Colorado officials say.
SeeChange says on its website that, as of now, it has been unable to find a carrier that could take the SeeChange plans over. Because no other carrier would take over the business, the employers that have been using the SeeChange plans must arrange for other coverage, and any rate guarantees, premium caps and other arrangements provided by SeeChange for fully insured products will expire at the end of the year, the company says.
