Why Did Medical Mutual Cancel Your Health Insurance?

Next Step: hubs.ly/H01ndv70
First, let’s get one thing straight, these cancellations or discontinuances only apply to individual health insurance policies in certain counties in Ohio.
You might have recently received a letter in the mail from Medical Mutual letting you know that they won’t be offering your health insurance plan in 2017.
As a result, you might have blacked out momentarily or suffered a moderate panic attack.
First, don’t worry.
Your health insurance isn’t going anywhere until the end of 2016.
You’re just going to have to pick a new insurance company for 2017 when open enrolment starts on November 1.
Nevertheless, I’m sure you're a little confused as to why Medical Mutual did this and what it all means.
After doing a little digging and putting all the pieces together, here’s a few answers to questions you’re probably asking yourself.
I thought it was against the law to cancel people’s health insurance policies?
Yes, it is.
Medical Mutual can’t cancel your policy because you use it too much or are costing them too much money.
The only way they can cancel it is if they no longer offer that entire plan to every in your area. It’s really more like discontinuing a product.
Kind of like Ecoto-Cooler Hi-C, Planters Cheez Balls or 3D Doritos.
Why did they discontinue health insurance in my county?
If you’re walking around somewhere reading this article on your phone, you might want to sit down, because things are going to get real.
You may or may not have seen a flurry of news stories about the different insurance companies backing out of Obamacare or losing tons of money.
The truth is, almost every insurance company that sells health insurance through healthcare.gov or the Health Insurance Marketplace has lost hundres of millions of dollars.
Medical Mutual is no different.
In fact their CEO, Rick Chiricosta, said in a recent article in the Cleveland Plain Dealer that “about 6 percent of our business (is) driving a $50 million deficit in two years."
They lost $50 million dollars in the last two years on only six percent of all people they have insured.
There choice was to either increase everyone’s rate (Medical Mutual would prefer that I don't say the exact percentage but it was somewhere between 20-50 percent) or drop plans in certain counties that they were having a hard time competing in.