Vermont's stricter review of health insurance rate increases is weakening the finances of Blue Cross Blue Shield of Vermont, according to an AM Best report cited by ThinkAdvisor.
The state's largest health insurer received a negative ratings outlook from AM Best, lowered from its previous stable position. AM Best said in recent years BCBS of Vermont "has reported sharp losses in underwriting results, where in some cases the organization's investment income did not provide a sufficient hedge to stabilize pre-tax operating performance."
The inability to "receive adequate rate increases approved through the state's rate review process" led to the poor underwriting results, according to AM Best.
The insurer's financial strength rating remained at B++, or Good, according to ThinkAdvisor.