BCBS of Vermont finances weakened by state’s tough rate review

Vermont’s stricter review of health insurance rate increases is weakening the finances of Blue Cross Blue Shield of Vermont, according to an AM Best report cited by ThinkAdvisor.

Advertisement

The state’s largest health insurer received a negative ratings outlook from AM Best, lowered from its previous stable position. AM Best said in recent years BCBS of Vermont “has reported sharp losses in underwriting results, where in some cases the organization’s investment income did not provide a sufficient hedge to stabilize pre-tax operating performance.”

The inability to “receive adequate rate increases approved through the state’s rate review process” led to the poor underwriting results, according to AM Best.

The insurer’s financial strength rating remained at B++, or Good, according to ThinkAdvisor.

More articles on payer:
Centene got better deal on WellCare as market slid
Cigna CEO’s threat to leave Connecticut derailed public option, state official says
Allina | Aetna enrollment tops 12,000

At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.

Download Whitepaper

The cost-saving opportunity most health systems overlook

Many hospitals and health systems scrutinize staffing, service lines, and payer contracts for savings. Fewer look at one of their largest assets: real estate.…

Advertisement

Next Up in Capital

Advertisement

Comments are closed.