Health insurers offer new products in preparation for healthcare reform

While waiting for Michigan's health insurance exchange to open in 2014, small businesses and individuals seeking health insurance have a few more options, with new products offered by UnitedHealthcare Michigan and Health Alliance Plan of Michigan.

Health insurers in Southeast Michigan are already gearing up their small business and individual health insurance products to prepare for 2014, when the Patient Protection and Affordable Health Act of 2010 fully kicks in and most individuals are required to purchase insurance.

An estimated 1.1 million people in Michigan are uninsured. About half are expected to purchase subsidize private health insurance through a state or federally operated health insurance exchange. The other half could become eligible for Medicaid, if state legislators next year approve a Medicaid expansion.

United is now offering small businesses with 99 or fewer employees a multi-choice health plan option with 26 different coverage levels, deductibles and premiums, including high-deductible health plans with health savings accounts. The plans could include such specialty benefits as dental, life, disability and vision coverage.

"UnitedHealthcare is helping more small businesses preserve coverage for their employees–and in fact, increase their options–while still controlling costs," said Jelka Petrovic, UnitedHealthcare Michigan's CEO in Southfield, in a statement.

"We recognize that these businesses and their employees are faced with many challenges in today's economic environment, and Multi-Choice gives them flexible, cost-effective healthcare options."

UnitedHealthcare serves more than 38 million people and is one of the businesses of UnitedHealth Group (NYSE: UNH), a diversified Fortune 50 health and well-being company.

Meanwhile, HAP is offering individuals 10 plans under the HAP Personal Alliance product line that features a one- to three-month short-term plan, lower co-pays and a new vision rider option.

Over the past few months, HAP officials have told Crain's they are seeing great interest in the Personal Alliance plans, which have replaced the SOLO product line.

Each month, HAP enrolls 400 to 500 new members in Personal Alliance. By 2015, HAP predicts more than 50,000 people will be insured with Personal Alliance. HAP currently insures 644,000 members in its HMO and PPO plans.

The HAP plans include high deductible plans with health savings accounts, a vision plan rider and greater use of co-payments than co-insurance ($25 co-pay for office visits and $50 for urgent-care visits).

Lori Rund, HAP's vice president of product development and market intelligence, said Personal Alliance has 10 plan designs that cover a wide range of ages and personal circumstances.

"The new short-term plan option provides coverage for temporary, transitional needs," she said.

For example, short-term coverage is designed to help people between jobs or newly hired workers who have a 90-day waiting period before their employer will cover them.

Since December 2011, HAP's small group and health segments have experienced 11.1 percent membership growth.