Burnt Offerings?

PPOs DECLINE in Marketplace Plans

Across the states, Preferred Provider Organizations (PPOs) are being dropped from insurance marketplaces, or greatly reduced, in 2016. A new analysis examines the decline in PPOs in marketplace plans across the country.

The Issue

PPOs are a popular choice among marketplace options for consumers, but carriers argue that their expense makes it impossible to price exchange products affordably in an already competitive market.

Key Findings

  • Only 33 percent of 2015 silver plan PPO offerings remain available in 2016.

  • In 22 states, all of the PPO offerings for 2015 were either dropped or reduced, with only 11 states keeping their offerings unchanged.

  • The dropping of PPO plans occurred either because carriers exited the market, or because they discontinued their PPO plans.

Conclusion

The decline in the offering of PPO plans in the 2016 marketplace represents a significant change, but it remains to be seen how marketplace consumers will react to these trends, and to what extent these changes in plan design will also be seen in the off-exchange market and in employer-sponsored coverage.