Blue Cross and Blue Shield of Minnesota is stepping out of the state’s insurance exchange next year.
Over 103,000 Minnesota health insurance customers are losing their coverage at the end of this year. This means that they will need to find a new health plan to protect them against medical expenses in 2017. Blue Cross and Blue Shield of Minnesota has announced its departure from the state’s insurance exchange.
It is for that reason that so many individuals and families will need to scramble for new coverage in 2017.
The largest Minnesota health insurance company said major financial losses led to its decision. In 2015, the insurer saw $265 million slip away on its individual market plan insurance operations.
The company released a statement saying “The individual market remains in transition and we look forward to working toward a more stable path with policy leaders here in Minnesota and at the national level.” It also pointed out that as health plan participation changes, the individual market has become volatile. Furthermore, this volatility leads to escalations in costs and prices at “unprecedented levels”.
The Minnesota health insurance company’s departure will leave about 103,000 state residents without coverage.
Those residents will need to head back to the Minnesota insurance exchange (MNsure) or to an insurance agent or broker. In this way, state residents will be able to review other coverage options.
Despite the fact that the primary Blue Cross Blue Shield unit is leaving, a subsidiary will remain. The Blue Plus subsidiary of the company is still selling health plans on the individual market. Currently, Blue Plus has about 13,000 members.
The last day for coverage for current customers with Blue Cross Blue Shield is December 31, 2016. The company’s statement expressed its understanding and regret for the difficulty it is causing its current members. Each affected individual will receive a notice assisting them in finding new Minnesota health insurance coverage for next year. This insurer is far from the only insurance company stepping out of federal and state exchanges in 2017. As the companies reevaluate their positions in the market, they sometimes choose to leave it altogether.