After nine years, effective January 1, 2003, the Washington State Health Care Authority (HCA) will no longer offer health insurance coverage through the nonsubsidized Basic Health program. Years of increasing costs to health insurers participating in the program coupled with changes in the individual market basically drove the plan out of existence.

The HCA has offered the nonsubsidized program since 1993 to employers and individuals who were not low income. Enrollment in the program reached a high point with more than 24,000 members in December 199, although current enrollment is less than 400, mostly concentrated in southwest Washington.

The HCA has notified affected members and included information on other health insurance options. Members may qualify for other state-sponsored programs and now have a choice of seven private insurers that offer individual coverage throughout the state.

Originally, the nonsubsidized program was developed to provide health coverage to Basic Health enrollees who earned more than the subsidized program allowed. But a crisis in the state individual insurance market quickly turned the program into a de facto high-risk pool.

With changes in the individual market and the High Risk Pool Board closing, access to non-Medicare enrollees, after 1995 this program became an oasis for individuals unable to find insurance in the private market. Health plans participating in the program, such as Bremerton-based KPS, began to experience heavy losses as claims they paid out greatly exceeded the premiums they collected.

By 2000, health plans involved in the subsidized program were no longer required to offer nonsubsidized coverage. As a result, many plans chose to not submit bids to provide nonsubsidized coverage.

Also by 2000, more companies were willing to offer individual health insurance in Washington and enrollment in the nonsubsidized program started to dwindle. In 2001, one plan that contracted with Basic Health agreed to accept new members, while three would only serve existing members. In this year’s negotiations, the two plans that still serve existing members told the HCA that they would discontinue participation in the program December 31, 2002.