Piedmont Community Health Plan, Inc. (“Piedmont”), based in Lynchburg Virginia, announced Thursday, April 18, that after December 31, 2024, its carriers, Piedmont Community Healthcare, Inc. and Piedmont Community Healthcare HMO, Inc., will discontinue offering small and large group commercial health insurance and Piedmont itself will discontinue offering administrative services to unaffiliated, self-funded employer plans.
Piedmont previously discontinued coverage in the individual health insurance market as of December 31, 2023, so this latest announcement means that the Lynchburg-based company will completely discontinue offering health insurance plans.
The company said it is making this announcement now to give its commercial group clients time to shift seamlessly to other health insurance carriers or administrators.
Piedmont plans to wind down its business in a manner that best serves its existing customers and meets all regulatory requirements, during a transition period that will continue throughout 2025 and some period beyond. Approximately 100 employees will be impacted during this transition period.
Piedmont members, group clients, brokers, providers, and vendors will be contacted directly at a later date with additional information concerning this transition.
Interim CEO Ryan Ziemann said Piedmont’s goal since 1995 has been to provide affordable health insurance options — and more localized customer service — to the people of Central Virginia and beyond. But it became increasingly clear over time that Piedmont is no longer able to provide healthcare coverage at rates that provide a significant benefit to its members, while also meeting internal financial goals.
“This was not a quick decision,” Ryan said. “For more than two years, Piedmont has explored ways to increase its critical mass to become more competitive with national insurers through potential partnerships and/or outside investments. While there was much outside interest in Piedmont,” he added, “the company was unable to reach an agreement that would enable it to compete on a more level footing with its much larger competitors. Piedmont has kept all stakeholders fully informed throughout this process.”
