Member Transition Agreement for UniCare Business: The Company's UniCare subsidiaries have made the strategic decision to exit commercial health insurance markets in Illinois and Texas. UniCare has entered into an agreement with Health Care Service Corporation ("HCSC"), which operates as the Blue Cross and Blue Shield licensee in Illinois and Texas, under which HCSC will, upon completion of receipt of regulatory approvals, offer guaranteed replacement coverage to these commercial group and individual members.
The Company believes that this agreement provides the impacted UniCare members with an opportunity for a smooth transition of benefits and coverage. The Company expects that most of this membership will transition to HCSC on December 31, 2009. For those members who elect not to accept HCSC's offer of replacement coverage, UniCare will continue to provide coverage until their current policies terminate according to their terms. Other UniCare and HealthLink members, including those enrolled in standalone specialty products, Senior or State Sponsored products, are not impacted by this member transition agreement.
UniCare Exit Letter
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UniCare set to exit Texas commercial health insurance market, BCBSTX offering guaranteed coverage to all members affected
UniCare announced Oct. 27 that it will no longer be providing group or individual health insurance policies in Texas beginning in 2010. As part of their exit plan from the commercial market, UniCare has collaborated with Blue Cross and Blue Shield of Texas (BCBSTX) to ensure UniCare customers are provided the best opportunity to continue health insurance on a guaranteed basis.
Under the agreement with UniCare, BCBSTX has closely mapped our products to UniCare’s products, so that we are able to offer policyholders similar benefits in most cases. We are also offering guaranteed acceptance with no lapse in coverage. The guarantee means no members lose their coverage due to pre-existing conditions.
The deadline for current UniCare clients to accept the BCBSTX offer is Dec. 1, 2009. The new BCBSTX coverage begins Jan. 1, 2010. Members will be sent new BCBSTX ID cards by January 1.
If UniCare policyholders don’t accept our offer, they can keep their UniCare policy to the end of their contract in accordance with its terms.
Although UniCare will no longer offer commercial health insurance in Texas, they will continue to carry Medicare, Medicaid, senior products, MHealth (Memorial Hermann Health Plan), and the Group Insurance Commission (GIC) of Massachusetts. They will also continue to carry stand alone specialty products (dental, vision, life/AD&D).