Blue Cross Blue Shield of Tennessee will leave major Obamacare markets in the state because of steep financial losses, the latest insurer to pull back from the exchanges.
The insurer announced it would not offer Obamacare plans in 2017 in Memphis, Nashville and Knoxville. The company told the Tennessean newspaper that by the end of this year, it anticipates losses from three years of selling on the exchange will approach $500 million.
The insurer will leave 112,000 people searching for new coverage next year and keep about 80,000 people primarily in rural areas, the newspaper said.
The state’s insurance regulator earlier this year approved a 62 percent rate increase for Blue Cross Blue Shield. Insurers Cigna and Humana received approval for rate hikes of more than 40 percent.
Blue Cross Blue Shield isn’t the only insurer to have financial issues with the law. A recent study from the Commonwealth Fund found that two-thirds of insurers failed to turn any profits in 2014, the first year the Obamacare marketplaces went online.
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Who is going to help us repeal ObamaCare now?
BCBS pulls out of exchange in Nashville, Knoxville, Memphis even though state approved 62% premium hike. #ItsWorking https://t.co/DrhjZ8D3qe
— Phil Kerpen (@kerpen) September 26, 2016
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