Baltimore-based nonprofit payer Evergreen Health is not allowed to sell health plans on Maryland's federal exchange until its acquisition and conversion to a for-profit entity concludes, the Maryland Insurance Administration determined, reports The Baltimore Sun.
Evergreen said in October a group of investors will purchase the insurer and it will transition to a for-profit company. CMS needs to approve the acquisition before Evergreen health plans can be offered on the state's exchange, which is called Maryland Health Connection.
Maryland Insurance Commissioner Al Redmer Jr. said the administration had hoped Evergreen would complete the regulatory process before the Dec. 15 deadline to enroll for coverage beginning Jan. 1, according to the report. However, Mr. Redmer said the deadline was cutting it too close.
The administration's decision leaves 6,000 Evergreen policyholders who purchased plans through the ACA exchange with only weeks to select a different plan or be automatically enrolled in another insurer's plan for coverage effective Jan. 1. An additional 3,000 policyholders who directly purchased plans from Evergreen will need to choose a different insurer on their own, according to the report.
While Evergreen has not been able to sell policies since open enrollment began Nov. 1, the insurer's plans were still listed on the exchange website.