Small, Not-for-Profit Insurers Struggle on Covered California

Small, not-for-profit insurers are lagging behind large insurers in enrollment through Covered California, the state's health insurance exchange, the AP/Sacramento Bee reports.

A key goal of the Affordable Care Act was to promote competition among insurers in order to reduce costs for consumers, according to the AP/Bee.

However, small, not-for-profit health plans accounted for less than 5% of total enrollment through Covered California as of the end of February.

California has seven regional insurers with ties to not-for-profits and public programs that are offering plans on the state's health insurance exchange.

However, so far, enrollment has been dominated by just four insurers:

• Anthem Blue Cross;
• Blue Shield of California;
• Health Net; and
• Kaiser Permanente.

According to the AP/Bee, a lack of brand recognition has hurt small, not-for-profit insurance companies. In some cases, such companies offered plans similarly priced to those from larger insurers (Nirappil, AP/Sacramento Bee, 4/2).