The healthcare system in our country improved considerably with the implementation of Medicaid, although many now fear a reversal. They do so because they have reason, as demonstrated by this state in which they have made a drastic decision with health insurance. Do you know what we are talking about? They have done what has been feared for 20 years, and of course it will affect millions of citizens.
20 years of health insurance in this state that come to an end: what has happened
For decades, Idaho state employees and their families have received their health insurance through Blue Cross of Idaho. This long-running relationship has provided stability and familiarity for tens of thousands of public workers. However, major changes are now underway.
The state recently announced that starting in 2025, state employee health insurance will be managed by a new insurer, SelectHealth, for the first time since 2004. This change comes after a competitive bidding process initiated by the Department of Administration.
The shift to SelectHealth marks the end of an era in Idaho. While the reasons behind the change remain controversial, its effects will soon impact healthcare and budgets across the state. As you can imagine, everyone is talking about potential benefits and risks, and what it could mean for state employees and their families.
This is the change in the Idaho health insurance that was feared
In January 2024, the state administration of healthcare had made public an announcement that the government workers’ health insurance provider had to be changed for the very first time since 2004. Following a competitive bidding, the state set a new health insurer that will handle the existing party in the period of 2025.
The aforementioned local insurer, Blue Cross of Idaho, is currently managing state employee health plans and has done so for nearly 20 years. But while yearly healthcare costs differ by state, the state hopes to find savings by entering the contract with other bidders.
Among different carrier offers, Arkansas eventually decided to go with Aetna, a newly elected insurance firm. The general term and four-year duration of Aetna contract will be effective from 1 January, 2025. In 2024, the state and Aetna will make the transition and perform all the tasks based on the instructions given to them.
They will carry out the transition of members, communication of changes and their alignment with the network of providers in preparation of the new coverage for 2025. The state guarantees that policyholders will not be affected, although it remains to be seen.
Why has Idaho switched health insurance company? The reason behind this unexpected measure
The state government for the first time since 2004 decided to switch health insurance providers for all employees of state and to install new ones. Consequently, this fundamental adjustment resulted from a detailed analysis where the state authorities discovered some flaws which should be addressed with further amendments.
The major factor was the saving cost which led to the shift. Healthcare costs have been rising drastically during the last 20 years that means this subject has become more and more problematic from the budgetary aspect. The new insurer was selected through an open tender process that offered discount to premiums of coverage.
Cost efficiency was also mentioned in the state report as one of the reasons, while the state also wants to afford more plan selections and flexibility. The existing insurer could only offer you one plan which is not a pleasant variety. At the same time, the new insurer offers multiple options and the known deductibles and copays.
The health insurance change you have seen is not only feared because of what it means for thousands of families, but also because of the effect it may have on the remaining 49 states. Moreover, some have expressed their intention to review who their insurance providers are, which would mean the loss of coverage in some cases, and the incorporation of new ones in others, but with a latent uncertainty.
