Blue Cross raises rate hike sought on Affordable Care plans 35%

it's surprised by the costs after two years of selling federally subsidized coverage and needs to charge even more than it thought two months ago."

Obamacare is the latest wealth transfer from the Middle Class.

The thing about Obamacare, is that it is growing into an enourmous economic footprint.

Not only will the Middle Class have higher premiums, it will also have higher deductibles, copays, and out of pocket maximums.

That ain't all.

The 3rd leg of this monstrosity is higher prices from Dr's and hospitals.

And do not look for this to level off. Those who are paying little to nothing will have almost unlimited demand, meaning they will absorb a larger share of the medical industry's capacity.

In a word, Middle Class America, once more you have been royally screwed by the Dems.

Swarley

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"Blue Cross and Blue Shield Post 1st loss in 15 years"

Aug 6, 2015, 2:49 PM [ in reply to Re: Blue Cross raises rate hike sought on Affordable Care plans 35% ]

http://www.newsobserver.com/news/business/article12479192.html

Blue Cross and Blue Shield, the state’s largest health insurer, said Friday that it posted its first financial loss in 15 years as a result of insuring high numbers of older and sicker people under the Patient Protection and Affordable Care Act.

The Chapel Hill organization signed up 257,704 people under the federal health care law, which requires insurers to provide coverage regardless of a customer’s health condition.

New enrollees last year swelled Blue Cross’s covered membership to 3.91 million people, and boosted revenue by 25 percent to an all-time high of $8 billion.

But steep medical claims – for hip and knee replacements, heart procedures, specialty drugs and other costs – drove up medical claims from $5 billion in 2013 to $6.4 billion in 2014. Blue Cross also paid $156 million in ACA-related fees, a new cost for the company.

As a result, Blue Cross posted a loss of $50.6 million last year, compared to net income of $92.6 million in 2013. It’s the first annual loss for Blue Cross since 1999.

“While our 2014 results were a disappointment, they were not a surprise,” said Gerald Petkau, senior vice president and chief financial officer. “As a general rule, ACA customers were older and sicker and drove costs higher than we had anticipated.”

The weak financial performance was reflected – albeit incrementally – in executive compensation for the organization’s top officers. CEO Brad Wilson’s total pay package slipped to $2.8 million last year from nearly $3 million in 2013 because of a reduced bonus, even though Wilson’s base salary increased. Six Blue Cross executives saw lower pay in 2014, while four got pay raises.

The architects of the ACA foresaw a surge of sicker customers and created an insurance pool to cover losses for affected insurers. Blue Cross plans to seek $120 million from the pool this year and booked $60 million in pre-tax revenue it expects to collect in the coming three years.

Petkau said if Blue Cross were reimbursed $120 million, the company’s loss would be $10.6 million this year. Other contributors to the company’s 2014 financial loss were reduced Medicare reimbursements from the federal government and increased IT costs.

The ACA losses were exacerbated when President Barack Obama in 2013 allowed people to keep their old insurance plans, which were cheaper than ACA plans. Thousands of Blue Cross customers opted for the cheaper plans, causing a shortfall of expected revenue, Petkau said.

The ACA plans became more concentrated with sicker people, so that the most expensive 5 percent of ACA enrollees brought in $75 million in revenue but cost Blue Cross $830 million in medical claims.

Read more here: http://www.newsobserver.com/news/business/article12479192.html#storylink=cpy

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Good article. It references the massive increase in costs associated with the legal requirement to take everyone, the impact of the President's cowardly politically-motivated tweaking of his terrible legislation, and the fact that the government has a pool of other people's money to give the insurance companies because they knew they'd lose money. I couldn't find anything on their projected $800 million in profits for FY2015.

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Re: Blue Cross raises rate hike sought on Affordable Care plans 35%

A good idea? who says (other than Barry O)

its a good idea for those that get subsidized(aka free) hc

When an idea does not work as planned....

Re: When an idea does not work as planned....

"North Carolina's largest health insurer says

Re: Blue Cross raises rate hike sought on Affordable Care plans 35%

Well, you knew that was coming....

Re: Well, you knew that was coming....

Re: Blue Cross raises rate hike sought on Affordable Care plans 35%

Re: Blue Cross raises rate hike sought on Affordable Care plans 35%

"Blue Cross and Blue Shield Post 1st loss in 15 years"

Re: "Blue Cross and Blue Shield Post 1st loss in 15 years"

No problem. The ACA will cover their losses. Free money.***

I wonder if Tbalm is frantically googling for more...

The playbook calls for sarcastic references to

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