Los Angeles Times Quotes Joel Ario on California's Chosen Health Plans

"California Picks 13 Health Plans for State-Run Insurance Market"
Los Angeles Times

May 23, 2013 – The Los Angeles Times interviewed Manatt's Joel Ario, a managing director with Manatt Health Solutions, for insight into the health plans that California selected for its new state-run insurance marketplace.

As reported by the Los Angeles Times, California announced that it has selected 13 health plans, reflecting a mix of large commercial insurers and smaller regional plans. Each insurer must now file detailed rate filings with state regulators, and the proposed premiums are still subject to review. More than 32 health plans had initially expressed interest in the marketplace last fall.

The winning health plans whittled their profit margins down to 2% to 3% and negotiated lower reimbursements for hospitals and doctors to help hold down premiums.

"There has been a lot of uncertainty about how to price in the 2014 marketplace with such unprecedented changes," said Ario. "I thought we would see some competitive bids in a market as a big as California."

Read more here.