Insurance officials link financial losses to the influx of new members under the Affordable Care Act, who have been older and sicker than average. According to Blue Cross, these policy holders incur higher drug and hospitalization costs than other customers by 25 and 50 percent, respectively, reports AL.com.
BCBS of Alabama has joined the ranks of several Blue Cross plans across the nation that have reported fiscal losses in the last two years, including BCBS of North Carolina and BCBS of New Mexico.
BCBS officials are optimistic the insurer will be able to withstand the losses, citing more than $2 billion currently in their financial reserves, reports AL.com.
Final financial results will be posted in March.
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