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.
More articles on payer issues:
Humana records 1.8M more ‘healthy days’ since 2012: 5 things to know
BCBS of Massachusetts introduces portfolio of digital health tools: 3 notes
CMS’ new Medicare rules may be fueling Walmart, Amazon deals
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.
