Blue Cross of NM pulls out of state exchange

Blue Cross Blue Shield of New Mexico will pull out of New Mexico’s state health exchange for 2016, according to Las Cruces Sun-News.

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A letter from BCBS of New Mexico President Kurt Shipley said the company has lost over $19.2 million in 2015 on the 35,000 individuals covered by plans purchased on and off the exchange, according to the Albuquerque Journal.

Insurance Superintendent John Franchini rejected Blue Cross’ request for an average rate increase of 51.6 percent. Mr. Franchini said he’s prepared to approve a 24 percent increase and is waiting for Blue Cross’ response.

Blue Cross will offer a basic-level insurance plan outside the exchange in 2016. It will be available at the same rate as in 2015.

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Mergers among insurers ignite concerns over private Medicare: 4 things to know

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