Smart Benefits: Is United’s Wait Wise?

Name: Go Local Prov
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Monday, May 19, 2014

Amy Gallagher, GoLocalProv Business/Health Expert

UnitedHealthcare's wait-and-see approach may be the right strategy when it comes to state healthcare exchanges.

Rather than be among the first of the insurers to jump on board, UnitedHealthcare strategically evaluated the exchanges in each state where it sells insurance to determine if it should offer plans to enrollees.

While some carriers viewed the exchanges as an opportunity to garner share in the states’ individual insurance markets, UnitedHealthcare didn’t want to risk significant losses, so chose to sit on the sidelines in all but a handful of states. Its thinking? The sickest and most costly members would select their plans when the exchanges opened for business.

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That means those individuals are less likely to be in the market for coverage going forward. UnitedHealthcare’s strategy is based on the belief that the next round of enrollees will be younger and healthier than the initial exchange adopters, pointing to a more balanced risk pool – and a safer bet.

As the future and financials of the exchanges continue to shake out, UnitedHealthcare and other insurers who opted out of some states initially are likely to re-evaluate the role of the exchanges as a future market in their growth plans.

This is a game of survival of the fittest and, with UnitedHealthcare’s cautious approach, it looks like the carrier is playing to win.

Amy Gallagher has over 21 years of healthcare industry experience guiding employers and employees. As Vice President at Cornerstone Group, she advises large employers on all aspects of healthcare reform, benefit solutions, cost-containment strategies and results-driven wellness programs. Amy speaks regularly on a variety of healthcare-related topics, and is often quoted by national publications on the subject matter. Locally, Amy is a member of SHRM-RI, the Rhode Island Business Group on Health, and the Rhode Island Business Healthcare Advisory Council.

Smallest + Largest Tax Increases in RI

#39

Pawtucket

FY 2013 to FY 2014 Tax Increase: -0.68%

Rank: 39

FY 2013 Tax Levy: $100,068,109

FY 2014 Tax Levy: $99,386,793

Amount of Increase: -$681,316

#38

Hopkinton

FY 2013 to FY 2014 Tax Increase: -0.40%

Rank: 38

FY 2013 Tax Levy: $18,300,511

FY 2014 Tax Levy: $18,228,199

Amount of Increase: -$72,312

Note: Has an independent fire district. Levy for fire districts not included.

#37

Cranston

FY 2013 to FY 2014 Tax Increase: 0.12%

Rank: 37

FY 2013 Tax Levy: $181,367,888

FY 2014 Tax Levy: $181,591,060

Amount of Increase: $223,172

#36

Jamestown

FY 2013 to FY 2014 Tax Increase: 0.37%

Rank: 36

FY 2013 Tax Levy: $19,089,398

FY 2014 Tax Levy: $19,160,796

Amount of Increase: $71,398

#35

North Providence

FY 2013 to FY 2014 Tax Increase: 0.40%

Rank: 35

FY 2013 Tax Levy: $67,468,778

FY 2014 Tax Levy: $67,737,041

Amount of Increase: $268,263

#34

Glocester

FY 2013 to FY 2014 Tax Increase: 0.41%

Rank: 34

FY 2013 Tax Levy: $20,666,156

FY 2014 Tax Levy: $20,750,248

Amount of Increase: $84,092

Note: Has an independent fire district. Levy for fire districts not included.

#33

West Greenwich

FY 2013 to FY 2014 Tax Increase: 0.42%

Rank: 33

FY 2013 Tax Levy: $17,700,512

FY 2014 Tax Levy: $17,775,266

Amount of Increase: $74,754

#32

Foster

FY 2013 to FY 2014 Tax Increase: 0.56%

Rank: 32

FY 2013 Tax Levy: $11,206,523

FY 2014 Tax Levy: $11,269,380

Amount of Increase: $62,857

#31

Warren

FY 2013 to FY 2014 Tax Increase: 0.57%

Rank: 31

FY 2013 Tax Levy: $21,962,605

FY 2014 Tax Levy: $22,087,246

Amount of Increase: $124,641

#30

Barrington

FY 2013 to FY 2014 Tax Increase: 0.66%

Rank: 30

FY 2013 Tax Levy: $55,757,749

FY 2014 Tax Levy: $56,127,312

Amount of Increase: $369,563

#29

South Kingstown

FY 2013 to FY 2014 Tax Increase: 1.03%

Rank: 29

FY 2013 Tax Levy: $66,399,782

FY 2014 Tax Levy: $67,082,117

Amount of Increase: $682,335

#28

Lincoln

FY 2013 to FY 2014 Tax Increase: 1.08%

Rank: 28

FY 2013 Tax Levy: $51,933,416

FY 2014 Tax Levy: $52,492,287

Amount of Increase: $558,871

Note: Has an independent fire district. Levy for fire districts not included.

#27

North Kingstown

FY 2013 to FY 2014 Tax Increase: 1.37%

Rank: 27

FY 2013 Tax Levy: $69,092,073

FY 2014 Tax Levy: $70,035,857

Amount of Increase: $943,784

#26

Cumberland

FY 2013 to FY 2014 Tax Increase: 1.53%

Rank: 26

FY 2013 Tax Levy: $59,560,610

FY 2014 Tax Levy: $60,472,810

Amount of Increase: $912,200

Note: Has an independent fire district. Levy for fire districts not included. Cumberland actual amount is an estimate reported by the town. Final levy will be set in May 2014

#25

Warwick

FY 2013 to FY 2014 Tax Increase: 1.57%

Rank: 25

FY 2013 Tax Levy: $220,300,865

FY 2014 Tax Levy: $223,763,444

Amount of Increase: $3,462,579

#24

Little Compton

FY 2013 to FY 2014 Tax Increase: 1.74%

Rank: 24

FY 2013 Tax Levy: $10,153,215

FY 2014 Tax Levy: $10,329,739

Amount of Increase: $176,524

#23

East Providence

FY 2013 to FY 2014 Tax Increase: 1.91%

Rank: 23

FY 2013 Tax Levy: $101,738,436

FY 2014 Tax Levy: $103,679,393

Amount of Increase: $1,940,957

Note: East Providence fiscal year is Nov. 1 to Oct. 31. Figures represent an state estimate which will be finalized in spring 2014.

#22

Westerly

FY 2013 to FY 2014 Tax Increase: 1.93%

Rank: 22

FY 2013 Tax Levy: $64,073,479

FY 2014 Tax Levy: $65,309,605

Amount of Increase: $1,236,126

Note: Has an independent fire district. Levy for fire districts not included.

#21

Middletown

FY 2013 to FY 2014 Tax Increase: 1.95%

Rank: 21

FY 2013 Tax Levy: $42,569,846

FY 2014 Tax Levy: $43,400,329

Amount of Increase: $830,483

#20

Charlestown

FY 2013 to FY 2014 Tax Increase: 1.95%

Rank: 20

FY 2013 Tax Levy: $22,244,817

FY 2014 Tax Levy: $22,679,022

Amount of Increase: $434,205

Note: Has an independent fire district. Levy for fire districts not included.

#19

Tiverton

FY 2013 to FY 2014 Tax Increase: 2.22%

Rank: 19

FY 2013 Tax Levy: $36,705,787

FY 2014 Tax Levy: $37,519,924

Amount of Increase: $814,137

Note: Has an independent fire district. Levy for fire districts not included.

#18

Narragansett

FY 2013 to FY 2014 Tax Increase: 2.25%

Rank: 18

FY 2013 Tax Levy: $45,045,014

FY 2014 Tax Levy: $46,060,213

Amount of Increase: $1,015,199

Note: Has an independent fire district. Levy for fire districts not included.

#17

Portsmouth

FY 2013 to FY 2014 Tax Increase: 2.41%

Rank: 17

FY 2013 Tax Levy: $46,892,274

FY 2014 Tax Levy: $48,021,889

Amount of Increase: $1,129,615

Note: Has an independent fire district. Levy for fire districts not included.

#16

Providence

FY 2013 to FY 2014 Tax Increase: 2.42%

Rank: 16

FY 2013 Tax Levy: $332,768,119

FY 2014 Tax Levy: $340,814,523

Amount of Increase: $8,046,404

Photo: Flickr/thurdl01

#15

Smithfield

FY 2013 to FY 2014 Tax Increase: 2.43%

Rank: 15

FY 2013 Tax Levy: $50,485,821

FY 2014 Tax Levy: $51,713,919

Amount of Increase: $1,228,098

#14

Scituate

FY 2013 to FY 2014 Tax Increase: 2.63%

Rank: 14

FY 2013 Tax Levy: $25,737,325

FY 2014 Tax Levy: $26,415,040

Amount of Increase: $677,715

Note: Scituate fiscal year is April 1 to March 31.

#13

Johnston

FY 2013 to FY 2014 Tax Increase: 2.73%

Rank: 13

FY 2013 Tax Levy: $68,325,207

FY 2014 Tax Levy: $70,191,873

Amount of Increase: $1,866,666

#12

Exeter

FY 2013 to FY 2014 Tax Increase: 2.76%

Rank: 12

FY 2013 Tax Levy: $12,699,098

FY 2014 Tax Levy: $13,048,989

Amount of Increase: $349,891

Note: Has an independent fire district. Levy for fire districts not included.

#11

Bristol

FY 2013 to FY 2014 Tax Increase: 3.20%

Rank: 11

FY 2013 Tax Levy: $35,907,363

FY 2014 Tax Levy: $37,055,367

Amount of Increase: $1,148,004

#10

Richmond

FY 2013 to FY 2014 Tax Increase: 3.39%

Rank: 10

FY 2013 Tax Levy: $16,192,073

FY 2014 Tax Levy: $16,740,541

Amount of Increase: $548,468

Photo: Flickr/peppergrasss

#9

Newport

FY 2013 to FY 2014 Tax Increase: 3.49%

Rank: 9

FY 2013 Tax Levy: $65,177,966

FY 2014 Tax Levy: $67,451,455

Amount of Increase: $2,273,489

Photo: Flickr/Jasperdo

#8

Coventry

FY 2013 to FY 2014 Tax Increase: 3.56%

Rank: 8

FY 2013 Tax Levy: $62,327,613

FY 2014 Tax Levy: $64,549,069

Amount of Increase: $2,221,455

Note: Has an independent fire district. Levy for fire districts not included.

#7

Burrillville

FY 2013 to FY 2014 Tax Increase: 3.63%

Rank: 7

FY 2013 Tax Levy: $27,830,582

FY 2014 Tax Levy: $28,840,267

Amount of Increase: $1,009,685

Note: Has an independent fire district. Levy for fire districts not included.

#6

North Smithfield

FY 2013 to FY 2014 Tax Increase: 3.82%

Rank: 6

FY 2013 Tax Levy: $28,611,366

FY 2014 Tax Levy: $29,705,309

Amount of Increase: $1,093,943

#5

New Shoreham

FY 2013 to FY 2014 Tax Increase: 3.85%

Rank: 5

FY 2013 Tax Levy: $8,400,360

FY 2014 Tax Levy: $8,723,934

Amount of Increase: $323,574

#4

West Warwick

FY 2013 to FY 2014 Tax Increase: 3.89%

Rank: 4

FY 2013 Tax Levy: $54,252,606

FY 2014 Tax Levy: $56,363,626

Amount of Increase: $2,111,020

#3

East Greenwich

FY 2013 to FY 2014 Tax Increase: 3.91%

Rank: 3

FY 2013 Tax Levy: $49,896,853

FY 2014 Tax Levy: $51,845,789

Amount of Increase: $1,948,936

Note: East Greenwich fiscal year 2013 & 2014 levies reflect the towns merger with the fire district in June 2013.

Photo: Flickr/Jimmy Wayne

#2

Woonsocket

FY 2013 to FY 2014 Tax Increase: 3.99%

Rank: 2

FY 2013 Tax Levy: $57,588,098

FY 2014 Tax Levy: $59,888,228

Amount of Increase: $2,300,130

Note: Woonsocket fiscal year 2013 includes a supplemental tax.

#1

Central Falls

FY 2013 to FY 2014 Tax Increase: 4.00%

Rank: 1

FY 2013 Tax Levy: $13,674,638

FY 2014 Tax Levy: $14,221,500

Amount of Increase: $546,862