UniCare is Exiting the Texas Market

I saw a blurb that UniCare was getting out of Illinois this morning (via Twitter).  It looks like they will be getting out of Texas as well.  Here is the text of an email they sent:

UniCare has made a difficult strategic decision to exit commercial health insurance markets in Texas. Following a transition period, UniCare will no longer provide health benefits in Texas.

While UniCare continues to be financially secure, competitive pressures have made it increasingly difficult for us to maintain our high standards for excellent customer service and affordable, quality benefits that you expect from us.

UniCare is pleased to collaborate with Blue Cross and Blue Shield of Texas (BCBSTX), which will offer guaranteed replacement coverage to UniCare’s existing employer groups and individual policyholders. We believe that BCBSTX is best positioned to offer quality products, a high level of benefits and the superior customer service that our customers have come to expect. In addition, like UniCare, BCBSTX is a statewide plan that includes a comprehensive network of physicians and hospitals to choose from.

For UniCare customers who elect to transition their benefits to BCBSTX, UniCare will pay all claims for covered services rendered on or before December 31, 2009. BCBSTX will pay all claims for covered services from the time and date specified in their offer letter. There will be no break in coverage.

For UniCare customers who do not choose to transition their benefits to BCBSTX, UniCare will offer to renew their policy but only for a term ending on June 1, 2010. If the customers’ renewal date falls after June 1, 2010, UniCare will terminate coverage effective June 1, 2010 if permitted to do so by the terms of the policy, or otherwise continue to provide coverage up to the renewal date.

BCBSTX will be in contact with you soon to discuss an offer to transition your customers’ health benefits. As groups transition over you will be able to view them in your BCBS Agent Access Portal.

If your customers also have dental, vision, group life or disability coverage through UniCare, the BCBSTX offer will also include that coverage.

Until UniCare has completed its exit from the market, they will continue to process claims as we do today and honor the commission structure that is in place.

We have enjoyed a productive working relationship with you and want to help make this transition as seamless as possible. BCBSTX looks forward to the opportunity to work with you to provide your customers with the same level of quality health care benefits and service that they received with UniCare.


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