Rising costs, subsidy expiration lead to premium increase, insurer says

Rising health care costs and the looming expiration of Obamacare subsidies are among the reasons that Blue Cross Blue Shield of Wyoming says it is increasing its health insurance premiums next year.

"We share the concerns rising health insurance rates may cause for our members, communities, and others. No health plan wants to send members this kind of rate increase," CEO and President Diane Gore wrote in a statement. "Premiums are forced to rise when the cost of care and medications go up. Right now, both are more expensive than ever, resulting in higher premiums and higher out-of-pocket costs."

Health insurance premiums across the country are increasing by around 20%. Premiums for Blue Cross Blue Shield of Wyoming's individual plans on the Affordable Care Act marketplace, also dubbed the Obamacare marketplace, are set to increase by around 25%.

Rate increases vary by the insurer's products, Gore said.

Gore said patients' health care needs have become more frequent and complicated in the Equality State. That's led to more visits, tests and procedures, she said, leading to higher premiums and out-of-pocket costs.

The company spent 95 cents of each dollar it received from premiums covering medical expenses in 2024, Gore said.

The insurer is the only company offering marketplace plans to people in Teton County and covers 80% of marketplace plans across the state. Federal subsidies that make those plans more affordable are set to expire at the end of the year, which played a role in the increase.

"The expiration was a factor for not only BCBSWY but for every health insurer across the country offering plans in the ACA marketplace," Gore wrote.

The company has estimated that more than 10,000 people may leave the marketplace due to the subsidy expiration. It accounted for people leaving the marketplace — which could make costs more expensive for people who remain — when determining new rates.

"It's absolutely true that the cost of health care is going up," said Travis Riddell, director of the Teton County Health Department. "That is what insurance pays for, and when an insurance company is facing higher costs, they are going to pass that on to their subscribers in terms of higher premiums."

Riddell added that significant and growing administrative costs may also contribute to the overall costs of health care.

"This year has been more challenging than years past with federal changes including the loss of the enhanced subsidies, the exit of Mountain Health Coop and just the overall increase of services and goods across the country," Wyoming Insurance Commissioner Jeff Rude of the Wyoming Department of Insurance wrote in a statement.