Here are eight things to know.
1. For the analysis, researchers examined financial filings for 29 regional Blue Cross Blue Shield plans. Various other insurers exited or scaled back their footprint on the ACA exchanges last year amid political uncertainty. Therefore, Politico notes, Blue plans often controlled their markets, with the 29 studied plans representing about one-fifth of the total market for Americans who purchase their plan themselves.
2. Kurt Kossen, president of retail markets at Health Care Service Corp., which oversees BCBS plans in five states, told the publication the insurer lost $2.5 billion on its individual market business during the first three years of the ACA marketplaces.
3. However, the analysis found things turned around in 2017 as many plans posted a profit.
4. Premium increases were cited as the top contributor to health plans’ improvement. According to the report, premiums for BCBS plans rose by an average of more than 25 percent last year.
5. Amid the premium increases, BCBS plans, on average, used 80 percent of revenue generated from premiums to pay for medical costs in 2017. This represents a 12 percent improvement over 2016 and means many insurers were able to cover people’s medical costs for the first time since 2014, according to Politico.
6. The analysis specifically found Health Care Service Corp. spent 77.7 percent of premiums on medical claims in 2017, improving 18.5 percent compared to 2016, and BCBS of North Carolina improved by 10 percent last year compared to the year prior, according to the report.
7. Still, Politico notes, eight of the 29 studied plans nearly certainly lost money in 2017 after spending more than 90 percent of premium revenues on medical costs.
8. As lawmakers continue to look at ways to stabilize the insurance market, it remains to be seen how recent financial performance will factor in, reports Politico.
Read the full Politico report here.
More articles on payer issues:
Centene’s next move? Stake in a national PBM
Humana’s board changed performance goals so execs could cash in stock awards
UnitedHealth ditches bid for Envision’s ambulatory services arm: 3 things to know
Becker’s 3rd Annual Fall Chief Pharmacy Officer Summit is the top tier event that the people leading the future of pharmacy convene. This 3-day event is built specifically for Chief Pharmacy Officers and senior pharmacy leaders. The sessions examine the workforce, financial and clinical priorities shaping pharmacy today. Becker’s is where candid discussions flourish and new ideas thrive. Becker's 3rd Annual Fall Chief Pharmacy Officer Summit
