More than 100,000 Minnesotans will need to look for new insurance for 2017. Blue Cross Blue Shield is pulling back from the state’s market for individual policies, citing heavy losses.
The individual market remains in a state of flux in some states in response to the Affordable Care Act reforms intended to restore it to functioning by setting up state exchanges offering premium and out of pocket subsidies, eliminating medical underwriting and requiring everyone to have some form of coverage year round.
Quoted in this item, Cynthia Cox of the Kaiser Family Foundation, provides this analysis:
“Right now what it seems like is that insurance companies are really trying to reset their strategy,” Cox said. “So they may be pulling out selectively in certain markets to re-evaluate their strategy and participation in the exchanges.”
She said the individual markets just aren’t turning out as expected. “The hope was that these markets would encourage exchange competition and [get] more insurers to come in. … I don’t know if we’re at a point where it’s completely worrisome, but I think it does raise some red flags in pointing out that insurance companies need to be able to make a profit or at least cover their costs.”
Need a speaker or webinar presenter on the Affordable Care Act and the outlook for health care reform? Contact Pilot Healthcare Strategies Principal Fred Pilot by email