Unicare 200

Unicare plans to stop providing health insurance to more than 180,000 customers in Texas.

"Unicare is financially sound," spokesman Tony Felts Tuesday. "However, there are just a few competitive pressures in the Texas market that has made it difficult for Unicare continue to be able to offer affordable health insurance and exceptional customer service that goes with it. "

Felt did not explain what these competitive pressures have been.

The Society of Indianapolis has an agreement with Health Care Service Corp., the parent company of Blue Cross / Blue Shield of Texas, to provide guarantees replacement coverage "benefits and rates similar to what they Unicare had to, "

Felts said.

John Greeley, spokesman for the Texas Department of Insurance, said Blue Cross / Blue Shield has promised a "premium roughly equal" as long as customers switch by December 1.

However, customers do not have to go to Blue Cross.

Unicare, a subsidiary of WellPoint Inc. health benefits company, will continue to provide life, disability, dental and vision coverage in Texas, Felt said. The company will also continue to contract with Texas to provide benefits to 20,000 people enrolled Medicaid across the state.

Most customers have switched Unicare probably at the end of the year, Felt said. But others should remain with the company until their policies expire in the course of 2010, "said Felts.

Unicare has about 200 employees in Texas, none in Austin. Although a majority of staff will lose jobs, some people remain in Plano and Houston to work on the remaining activities, Felt said.

Unicare is also withdraw from Illinois, where another 180,000 people will have to find a new cover.

Felt told to stop business decisions in Texas and Illinois are not related to federal efforts to overhaul health care.

Of the some 180,000 customers in Texas, Unicare provided health insurance to 26,000 people who work for small employers; 19,000 people who work for large employers, 127,000 people with individual policies. The 12,000 others had policies with Unicare HMO they have obtained by their employers.