BCBS of Michigan seeks 27% premium increase for ACA exchange plans

Detroit-based Blue Cross Blue Shield of Michigan wants to raise premiums for its individual ACA exchange plans 26.9 percent on average next year — a figure the payer says would increase to 31.7 percent if federal subsidies are discontinued.

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BCBSM pointed to several contributors for the request, including rising drug prices, 20 percent of individual BCBSM enrollees dropping coverage after receiving health services, a lack of young policyholders and operating as the only preferred provider organization plan on Michigan’s ACA exchange.

Last year, the payer received $166 million in federal subsidies to offset the cost of offering coverage to low-income consumers on the exchange.

BCBSM’s proposed increases will require regulatory approval. 

More articles on payer issues:
Cleveland Clinic, Oscar Health to offer co-branded health plan
Centene to enter ACA exchanges in 3 states
BCBS of Louisiana names CMO: 5 notes

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