The Rise of the Small Insurer

More than a quarter of insurers are new to the private insurance market. So why would some of the nation's largest companies decide not to compete for these new customers?

Today is, in some ways, the grand opening of Obamacare. It’s the day that open enrollment begins for state health exchanges. But several of the nation’s largest health insurers are sitting out the exchanges. And this has created an opportunity for smaller companies to expand their business.

L.A. Care is a health plan provider located on the 10th floor of a high rise in downtown Los Angeles. It only offers plans to low-income individuals through Medicare and Medicaid. But starting today, anyone can buy private insurance form L.A Care.

“This is our first move into the market," says Howard Kahn, the CEO of L.A. Care. "So this is a big jump for us, and it’s in response to health care reform.”

Kahn took me to L.A Care’s call center, where dozens of employees sit in a tight grid of cubicles answering phones. But not for long.

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Source: Marketplace