Blue Cross Blue Shield of New Mexico won't offer 2016 plans on state health exchange

Aug. 26--Blue Cross Blue Shield of New Mexico will not offer any individual insurance plans to New Mexicans through the state health exchange for 2016.

President Kurt Shipley announced the move Wednesday in a letter to individual customers that was also posted on the insurer's website www.bcbsnm.com

The letter said Blue Cross Blue Shield of New Mexico lost $19.2 million in 2015 on the 35,000 individuals covered by plans they purchased on and off the exchange.

"We were unable to reach an agreement with the Office of Superintendent of Insurance ... that would allow us to continue to offer coverage on the state's health insurance exchange with rates that would be adequate to cover the anticipated needs of our members for the coming year," the letter said.

Existing policies will remain in force until the end of the year and the insurer's small group, large group, comerical, Medicare Advantage Prescription Drug, Medicaid and individual dental plans will not be affected.

Blue Cross will also offer a Bronze level insurance plan off the exchange in 2016 which will be available to all consumers at the same rate as in 2015.

Insurance Superintendent John Franchini earlier this month rejected Blue Cross Blue Shield's request for an average 51.6 percent rate increase.

Franchini said he was prepared to instead approve a 24 percent increase and was waiting for Blue Cross Blue Shield's response.

He had approved much smaller rates for the other insurance companies that offer plans on the exchange, Presbyterian Health Plan, Molina Healthcare of New Mexico, Christus Health Plan and New Mexico Health Connections.

Those insurers say they are willing to accommodate Blue Cross members who decide to pick their plans. The open enrollment period to purchase plans on the exchange will begin Nov. 1.

"We are extremely disappointed that BCBSNM will not be an option for our customers on the New Mexico Health Insurance Exchange in 2016," Shipley said, in a statement.

Franchini said that Blue Cross could return to the exchange after one year and offer plans for 2017.

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