Detroit-based Blue Cross Blue Shield of Michigan wants to raise premiums for its individual ACA exchange plans 26.9 percent on average next year — a figure the payer says would increase to 31.7 percent if federal subsidies are discontinued.
BCBSM pointed to several contributors for the request, including rising drug prices, 20 percent of individual BCBSM enrollees dropping coverage after receiving health services, a lack of young policyholders and operating as the only preferred provider organization plan on Michigan's ACA exchange.
Last year, the payer received $166 million in federal subsidies to offset the cost of offering coverage to low-income consumers on the exchange.
BCBSM's proposed increases will require regulatory approval.