ACA hits BCBS with billion-dollar losses: 5 takeaways

Many of the U.S. Blue Cross and Blue Shield plans have taken a huge financial hit, with many plans losing hundreds of millions of dollars on ACA policies, according to Forbes.

Here are five takeaways:

1. A Fitch Ratings report found 23 BCBS plans had decline in earnings, and 16 plans experienced a net financial loss due to ACA plans.

2. Of BCBS plans, 23 plans reported a collective loss of $1.9 billion in earnings for the first nine months of 2015.

3. The losses will likely impact consumers, as the payer will have to raise prices to recover the billions of dollars. In Illinois, 80 percent of its customers purchase coverage on the public exchanges.

4. Blue Cross and Blue Shield of Michigan reported the biggest losses in the first nine months of 2015, with a net loss of $622 million.

5. Health Care Services, which owns BCBS plans in five states, lost $442 million in the first nine months of 2015.

More articles on coding & billing:
Healthcare officials crack down on PPACA enrollment rules — 5 things to know
Voters wary of Sen. Bernie Sanders' 'Medicare for all' proposal — 7 points
Payers get a win — 3 insights on the Obama administration's latest requirement on consumers

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Webinars

Featured Whitepapers

Featured Podcast