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70% of payers lost money on individual health plans in 2015 — 4 key points

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In 2015, 70 percent of health insurance companies lost money on individual health plans, according to McKinsey and Company, a global management consulting firm, according to The New American.

Here are four key points:

1. On Feb. 10, Humana reported it already has booked $176 million in losses for 2016. Due to heavy losses, the payer is seriously considering pulling out of the ACA.

2. Blue Cross and Blue Shield paid out $20.7 billion in claims during the first three quarters of 2015.

3. Many payers cited not charging enough in premiums and underestimating projected losses as reasons for the losses.

4. Consumers often wait until they need coverage before buying it, which may have contributed to payers' losses.

More articles on coding & billing:
Insurance coverage adequacy — How the US compares: 15 key statistics
Most California payers support plan to change tax on health plans: 5 takeaways
Which states had the highest, lowest insurance rates for children?

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