BlueCross rates for individual plans may stabilize next year as markets steady
"We had a very strong year operationally with all of our lines earning 4-star recognition [for customer service] and all of them being profitable in 2017," Vaughn said. "It was led by our individual plan results, which for the first time since 2014 generated net income last year. After three years of consecutive losses, we knew we had to get to some level of net income and our individual policy business ended up performing better than expected."
BlueCross boosted its individual policy rates by 21 percent this year after more than doubling its initial individual rates that the Tennessee BlueCross plan introduced as one of the cheapest in the nation in 2014 when the marketplace exchange plans began under the Affordable Care Act in 2014. BlueCross racked up more than
But after a rocky start, the pricing of plans may have reached more of an equilibrium even with the individual mandate repealed.
BlueCross said it priced for such uncertainty and may not have to boost rates again for 2019. BlueCross and other health insurers will file their requests for 2019 rates in the next month or so, and the
"While medical costs are always the main component of determining our premiums, we think that we can get to where we need to be with relatively stable prices as we move forward," Vaughn said, noting that the individual market is continuing to be profitable in 2018.
BlueCross in
"It was a market that had largely not been served, and it was a market that proved worse than we had expected," Vaughn said.
In response to heavy losses, BlueCross scaled back its statewide coverage and raised its premiums, while other insurers, including Humana,
"With substantial rate increases, I think a lot of insurance companies that are still in the exchanges have insulated themselves and priced for the risk involved," she said. "A lot of health insurers did much better in the individual market last year so we may not see as big of increases for 2019."
State Sen.
"Most people still get their health insurance through their employer, and the strong economy we're seeing in
With its record profits in 2017, BlueCross swelled its reserves last year to
Net income for BlueCross last year nearly quadrupled what the company earned in the previous year and helped to offset some of the operating loss the company had in 2015 (although investment income that year still generated a net positive for earnings).
Despite the record profits for
For the typical premium dollar paid to BlueCross,
Vaughn said the effectiveness of the administration of the BlueCross plans was verified by the recognition last year by the consumer research company
Contact
------
Correction: This story has been corrected to show net income of
___
(c)2018 the Chattanooga Times/Free Press (Chattanooga, Tenn.)
Visit the Chattanooga Times/Free Press (Chattanooga, Tenn.) at www.timesfreepress.com
Distributed by Tribune Content Agency, LLC.
Catasys Reports 2018 First Quarter Financial Results
CompleteMarkets.com Named Among ’50 Fastest Growing Companies in 2018′
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News