Chattanooga-based BlueCross BlueShield of Tennessee to expand Obamacare coverage
The
"We are thrilled with the news as rates and competition are coming in favorable across the country," said
The proposed rate changes show most carriers are pricing their plans relatively close to their rivals and are being more aggressive in their pricing with greater competition and more certainty about the future of Obamacare. Although
"This range of around 11% (between the highest and lowest priced plans) is the tightest we have seen," Tennessee Insurance Commissioner
"This news is a welcome step for Tennesseans who have faced an over 176 percent increase in health insurance premiums since Obamacare took effect, but the news could have been even better," Alexander said. "Since
The Tennessee BlueCross plan entered the Obamacare individual market six years ago with aggressive pricing, but the company more than doubled its rates after the federal government changed its risk adjustment payments to insurers, eliminated the mandate for individuals to buy health insurance and implemented other changes that proved costly for BlueCross. BlueCross also trimmed its coverage areas in
BlueCross initially lost more than
In 2019, BlueCross cut its average individual rates by 14.8% -- the biggest drop in program history -- after some of the worst anticipated changes in Obamacare failed to materialize and the company achieved a major turnaround in the profitability of the individual market.
"When we priced our plans for 2018, we factored in a number of potential risks that didn't end up playing out as they could have," Paulk said. "We made higher margins than intended, which then led us to lower rates for 2019 by an average of 14.8%. Today we've found the right balance -- we can cover our members' medical needs and earn a sustainable margin."
BlueCross said it plans to add extra maternity support, enhanced telehealth benefits and a member rewards program in 2020.
Cigna spokeswoman
"Our rate filings are based on our customers' historical claims experience, expected medical costs trends, product changes, and overall market performance," she said. "Cigna reduced rates for 2019 on-exchange plans in
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