Blue Cross Blue Shield of Louisiana lost $66 million on individual plans on the Affordable Care Act marketplace in 2014 and another $77 million in 2015.To stay afloat, BCBS is increasing individual plan premiums and ditching its platinum plan.
Consequently, a record number of small group plan sales were seen over the past six months, BCBS of Louisiana’s SVP and CMO Brain Keller told the Baton Rouge Business Report. If the small group plans remain too cumbersome, some small companies may find it more financially beneficial to pay the penalty rather than pay for coverage.
Insurer losses, increased by faults in the Affordable Care Act’s risk corridor program, have also been affected by individuals who enroll for coverage outside of open enrollment, use the coverage, then drop the plan and leave the costs to insurers, according to the Baton Rouge Business Report.
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