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Texas BC/BC lost 400 million on their exchange business, or $360.00 per customer. While most insured's are losing money on the exchange business, not many are losing quite this much per customer.
It also discusses the reason for them dropping the PPOS and their price increases in the HMO, which I know Junping Jack has been discussing.
ACA growing pains: Losses for Blue Cross Blue Shield of Texas are over twice the U.S. average | | Dallas Morning News
It also discusses the reason for them dropping the PPOS and their price increases in the HMO, which I know Junping Jack has been discussing.
ACA growing pains: Losses for Blue Cross Blue Shield of Texas are over twice the U.S. average | | Dallas Morning News
Unfortunately for them, most of the business has been a money-loser. And Texas’ largest insurer, Blue Cross Blue Shield of Texas, has been hit hard — over twice as hard, in fact.
The Texas unit lost almost $400 million on exchange business in 2014, the ACA’s first full year. That comes to a loss of about $360 per member, based on rate filings with regulators. That compares with an average loss of $163 per member for insurers nationwide, according to an estimate by McKinsey & Co.
Almost two-thirds of insurers lost money on the exchange in 2014 and their financial struggles are continuing. A Goldman Sachs analyst, who evaluated the Blues in 30 states, projects an aggregate loss for the not-for-profit plans in 2015. It would be their first loss since the 1980s, and exchange claims are the key driver, wrote Matthew Borsch.Results were so bad that Blue Cross Texas dropped its PPO for the individual market. Then it raised rates almost 19 percent for its exchange HMOs in 2016, and adjusted the prescription formulary and co-pays