BCBS of Tennessee to put $50M in tax savings toward lower premiums, new consumer tools

BlueCross BlueShield of Tennessee will use $50 million in savings under new federal tax law to lower members' premiums and improve consumer tools used to find in-network physicians and hospitals, according to the Times Free Press.

BCBST's tax rate dropped from 35 percent to 21 percent this year under President Donald Trump's new tax law. The insurer will use about $12.5 million of its savings to provide greater access to apps and services that "make it easier for our members to manage their health — and their healthcare," John Giblin, BCBST's executive vice president and CFO, told the publication.

BCBST will funnel the remaining $37.5 million toward premium decreases. However, amid soaring medical costs and the elimination of cost-sharing reduction payments under the ACA, BCBST's 3 million members will likely see the tax savings offset only a small part of any rate increase, the Times Free Press reports.

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