The state’s largest insurer has just asked for a MASSIVE rate increase that could affect nearly 603,000 Texans buying individual policies through the Affordable Care Act.
Blue Cross and Blue Shield of Texas, which is the only insurance carrier to offer health insurance in all areas of Texas, has asked for rate increases of nearly 60 PERCENT for 2017. The company did not say what action they will take if they don’t get approval for the rate hikes.
Insurers across the nation have announced they are losing money in the Obamacare exchanges, as costs have exceeded expectations, and they are unable to deny coverage to anyone based on pre-existing conditions under the new law.
Blue Cross and Blue Shield of Texas has reported a loss of $321 million last year in the individual market, and said it spent $1.26 for every $1 it took in.
The Houston Chronical reported that Blue Cross and Blue Shield of New Mexico asked for a 51 percent rate increase for its exchange plans last year, and when state officials refused, the company withdrew from the state.
One insurance broker in Texas said people in rural areas of Texas will be hit the hardest by the rate increase, because Blue Cross Blue Shield is often the only option in their areas.