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SeeChange Withdrawing from Market Effective January 2015

Aug 21, 2014

SeeChange Health will be withdrawing from the California and Colorado group health insurance markets effective January 1, 2015. They are working to transfer their policyholders to another, established carrier and will announce details of this arrangement as soon as possible.  

SeeChange is committed to making this transition as seamless as possible for you, your clients and their employees. SeeChange Health is working with the Departments of Insurance to protect your clients. They are confident SeeChange Health has the capital and reserves necessary to pay all eligible claims for which they are responsible. By September 15th, SeeChange Health Insurance will provide you specific information concerning your client’s options and help facilitate their transition to new coverage. Your clients will receive customized information packages and forms by the end of September. (They’re expediting this communication for groups renewing on October 1st).

Existing groups covered by SeeChange Health Insurance will be allowed to renew this coverage through December 1, 2014. Grandmothering will be available to eligible groups. However, regardless of a group’s renewal date, coverage with SeeChange Health Insurance will end at midnight, December 31, 2014.

Cases submitted to SeeChange Health Insurance for November or later effective dates will be returned to the broker or general agency submitting the applications. Groups already in underwriting or approved for September or October effective dates will be issued policies unless withdrawn by the broker or general agency prior to their initial effective date. Coverage for new sales will end at midnight, December 31, 2014.

Sales Support will be available to assist you and your clients during this transition. SeeChange Health Insurance will continue to provide customer service and claims operations during the claims run-out period through December 31, 2015.

To keep track of the latest news, processes and information on this market withdrawal, please visit

SeeChange Health Insurance appreciates and thank you for your support of our efforts.


When will coverage for my current SeeChange Health Insurance clients end?
At midnight, December 31, 2014

What options will they have when their SeeChange Health Insurance coverage ends?
SeeChange is working to automatically move your clients into the plans of another carrier. Details on this option will be available as soon as possible. However, your clients are not obliged to enroll with this new carrier. They may move to any other carrier available to them.

Do my clients have to wait until January 1st to move from SeeChange Health Insurance?
No. They may move to another carrier at any time prior to January 1st.

My group has a 12 month rate guarantee. Will they be able to keep their coverage for the full year?
No. A market withdrawal negates rate guarantees, premium caps and other arrangements. SeeChange Health Insurance fully-insured products will no longer be available starting January 1, 2015.

What led to SeeChange Health’s decision to withdraw from the market?
When SeeChange received approval from the California Department of Insurance to launch SeeChange Health Insurance in 2010, the company committed to maintaining Risk Based Capital at 300%, significantly above statutory minimums. We have fallen below that reserve amount. The SeeChange Health Board of Directors has decided to focus exclusively on its fast growing Solutions business and that subsidiary’s Health Improvement Platform. Consequently, the additional investments necessary to achieve the 300% RBC level will not be forthcoming.

Why is SeeChange Health Insurance withdrawing from the group insurance markets?
Capital infusions will now be directed to SeeChange Health Solutions. This evolution of SeeChange Health, LLC’s business strategy and the changes associated with it allow the company to optimally leverage their cash and other resources to grow in the expanding healthcare and corporate wellness markets.

What if my client’s employees or dependents submit claims incurred in 2014 after their coverage with SeeChange Health ends?
SeeChange Health Insurance will continue to process and pay eligible claims during the claims run-out period through December 31, 2015. Your clients must submit claims incurred in 2014 by December 31, 2015.

Does SeeChange Health Insurance have the money to cover claims?
Yes, they are confident that they do. The company’s market withdrawal is precipitated by the company declining to maintain Risk Based Capital at 300%. They are confident the company has cash on hand and the cash flow necessary to meet all anticipated claims for which SeeChange Health is responsible.

Does this market withdrawal impact both California and Colorado?

Does this market withdrawal impact both small and large group insurance policies?

How will this impact my commissions and marketing co-op dollars?
SeeChange Health will continue to pay commissions on your groups, per your broker agreement, while the group remains with them. Once your business moves to a new carrier that carrier’s commission schedule will apply. Your SeeChange Health Insurance marketing co-op account is being suspended effective immediately. Expenses already incurred that are eligible for reimbursement from your marketing co-op account will, of course, be covered as usual.

Where can I quickly find updates on matters relating to this situation?  SeeChange will post the most up-to-date information they have at 

For questions, please contact a member of your b&p Sales Teams - 888.722.3373.

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