888-765-5400BCBSNC Rate Increase for 2016 – Call Us 888-765-5400
A few weeks ago, Blue Cross Blue Shield of North Carolina announced a requested rate increase for all 2016 BCBSNC health policies. Since that time, NC health plans has received numerous calls from concerned customers regarding the proposed rate increase, with the number one question being why? Here’s the answer.
Since the induction of the Affordable Care Act, numerous Americans have been able to acquire new health insurance. With the influx of new customers, both the current administration as well as insurance companies have understood that it would take some time to determine the full impact of the ACA on health care costs. According to Patrick Getzen, Vice President and Chief Actuary for Blue Cross Blue Shield of North Carolina, in preparation for the third full year of coverage in 2016 BCBSNC is now “starting to get a more complete picture of medical spending under the ACA.” As Getzen notes, both industry and government officials relied on two assumptions when the Affordable Care Act began. They expected a healthier mix of customers in the second year (2015), and a leveling-out of medical spending following an increase in demand the first year (2014). “We now have enough data to know that both of these assumptions have not proven true,” reports Getzen in an article explaining the proposed rate increase for the upcoming year.
Like other insurance companies across the nation, BCBSNC must make changes in order to continue to remain viable and offer health plans to customers across the state. Although Blue Cross Blue Shield of NC understands how a rate increase will impact customers, the increased use of health care services in 2015 created a gap “too large to ignore.”
What data has shown is that ACA customers typically use a substantial amount of expensive health care services and report an increasing number of chronic health conditions. The claims and expenses filed to Blue Cross Blue Shield of NC are higher than the amount of premium dollars the company is collecting. In fact, as BCBSNC reported last month, the operating losses on their ACA business in 2014 were $123 million an that kind of business loss simply cannot be sustained year after year.
The important thing to keep in mind is that the Department of Insurance is scheduled to review the proposed rates for 2016 late in the month of August. Current ACA members will receive renewal notices that explain how the changes for 2016 will affect them this coming fall. Open Enrollment begins November 1st and extends through January 31st and during that time, customers can make any necessary changes to their health plans. When you get your renewal rates, give us a call and we will be happy to discuss any changes you would like to make to your current benefits.
Blue Cross Blue Shield of North Carolina is working to provide lower-cost, preferred network plans and to offer customers affordable options that include highly regarded hospitals and in-network providers. The changes in the insurance industry under the Affordable Care Act have been substantial; however, Blue Cross Blue Shield of North Carolina is committed to keeping the residents of NC covered and any upcoming changes are being made in an effort to maintain the best possible coverage for all BCBSNC members.
For more information on Blue Cross Blue Shield of North Carolina insurance coverage, the Marketplace and healthcare gov to apply for your subsidy, please visit our website at www.nchealthplans.com or call our toll free number 888*765-5400 and speak with one of our experienced and professional agents. Let us help you navigate through the Health Care Reform changes in accordance with the new regulations of The Affordable Care Act, also known as Obama care.