Blue Cross NC to lower ACA rates by 4% Blue Cross NC to lower 2024 ACA marketplace plan rates by 4%

Blue Cross and Blue Shield of N.C. said Wednesday it has received approval to lower by 4% its average rate for individual and family federal health insurance plans in 2024.

The permission was provided by the N.C. Insurance Department for federal Affordable Care Act plans, also known as Obamacare.

By comparison, the approved statewide year-over-year rate increase was 7.4% for 2023 and 2.8% for 2022, along with a 1% decline for 2021.

As of July, Blue Cross had 414,000 North Carolinians participating in ACA plans.

Open enrollment for ACA plans again begins Nov. 1 and ends Jan. 15. Health plans purchased by Dec. 15 during the enrollment period go into effect Jan. 1.

Individual rates vary based on location, age, subsidy amount and plan.

A regional breakdown of the rates typically is provided in October. Blue Cross NC is projecting lowering ACA rates in every rating region in a range of 0.2% to 6.6%, with metro areas tending to be lowering than rural areas.

Customers' premium amounts depend on federal premium subsidy levels, which will be determined by the federal Centers for Medicare and Medicaid Services in October.

About 85% of Blue Cross NC's current customers with individual ACA plans qualify for subsidies for their 2024 plans. Subsidies vary by plan and household income.

Blue Cross NC is the only insurer that has offered ACA plans in all 100 counties of North Carolina since the ACA market first opened in 2014.

"Our rates for an individual ACA health plan are actually 5% lower than they were in 2018, despite the rising costs of health care and overall inflation in the U.S.," said Dr. Tunde Sotunde, the insurer's chief executive and president.

The insurer said the average rate decrease will lower total premiums by an estimated $130 million statewide.

Every county will be eligible for Blue Cross NC's preferred provider organization plan Blue Advantage.

In the Triad, Triangle and Charlotte regions, Blue Cross NC will continue to offer Blue Local and Blue Home plans whose average monthly rates are $100 to $200 lower than a similar PPO plan.

Blue Cross NC will continue offering renewal of what are considered "transitional plans" in 2024 for both individuals and small groups.

These are plans purchased between March 2010, when the ACA was signed, and October 2013 when regulations went into effect.

Transitional plans do not meet ACA requirements, but are allowed by federal law. The plans cannot be sold to new customers.

ACA competition

Cigna Healthcare said Aug. 30 that its ACA marketplace insurance plans will be available in Forsyth and five other Triad counties as part of expanding its North Carolina reach by 15 counties to 85 for 2024.

The other Triad counties added are Davidson, Davie, Rockingham, Stokes and Yadkin.

Cigna's ACA plans already had been covering Alamance, Guilford and Randolph counties.

That leaves Alleghany, Ashe, Surry, Watauga and Wilkes counties as not covered by the insurer in the Triad and Northwest N.C.

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