The single largest insurer has reversed course and will remain on Access Health Connecticut, the state's health insurance marketplace.
Connecticare had informed state regulators last Friday that it would exit Access Health, and not offer plans for the 2017 open enrollment which is scheduled to start Nov. 1.
The decision by Connecticare to leave Access Health came after a New Britain Superior Court judge denied a request to reverse the Insurance Department's refusal to allow the insurer to raise rates by more than 17 percent for the more than 50,000 policyholders who purchased their plans through the state marketplace.
The move means Access Health will have two insurers, Anthem and Connecticare, offering individual plans for the 2017 coverage year.
In a statement, Connecticare's CEO Michael Wise wrote, "After hearing from state officials, providers and beneficiaries about the importance of our plan to Connecticut, we have decided to move forward into 2017 as a plan on the Exchange at the rates approved by the Department. To that end, we have withdrawn our legal appeals with the courts and the Department, and we have sent a letter to the Exchange rescinding the termination notice that we sent to them on Friday."