Consumers should expect premium hikes, BCBS of Tennessee says: 5 takeaways

Written by Mary Rechtoris | January 29, 2016 | Print  |

BlueCross BlueShield of Tennessee may be forced to raise premiums as it suffers huge losses on its ACA health exchange plans, according to timesfreepress.com.

Here are five takeaways:

1. The payer estimates it will lose more than $150 million on its ACA exchange plans offered in 2015.

2. BCBS must submit its preliminary rate requirements to Tennessee regulators for 2017 premiums by May.

3. The Tennessee Department of Commerce and Insurance must approve any rate increase after the agency reviews claims and financial data.

4. In 2015, state regulators approved rate increases of 44.7 percent for Community Health Alliance before it closed, and rates of 36.3 percent for BCBS.

5. "We are not out of the woods yet and as we look out on 2016, we believe that no Tennessee insurance carriers will make any money on this market and, in fact, we're all going to lose a substantial amount of money," said CEO J.D. Hickey, BCBS of Tennessee.

More articles on coding & billing:
Alaskans only have 1 option for coverage after forcing Moda Health out of individual marketplace: 5 things to know
Minnesota overpaying patients enrolled in wrong healthcare plans: 6 insights
Spike in HealthCare.gov sign-ups after slow week: 6 things to know

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