BlueCross BlueShield of Tennessee Issues $22.6 Million Premium Refund to Policyholders
BlueCross BlueShield of Tennessee is making good on its obligations to policyholders by refunding them more $22 million.
The Affordable Care Act, or "Obamacare," requires health insurance companies to pay out 80% of their premiums charged for individual, small-group and large-group plans.
State regulators determined that BlueCross had only paid out 77.9% of individual premiums and 79.8% of small-group premiums for medical care, which means they must retroactively settle the difference.
Premium payouts are used primarily to pay for medical care costs. The money is also used to cover operating costs including customer service, fraud detection, and quality control measurements. After paying out taxes and the required amount of premium income, the provider keeps the leftover as net income. That money goes into the provider’s reserves.
The $22.6 million in refunds being paid to BlueCross customers this week are for medical losses below the 80% threshold that BlueCross failed to meet, representing 2.1% of its individual premiums and 0.2% of small group premiums.
BlueCross began offering Tennessee’s first statewide coverage plan under Obamacare, but it posted losses of more than $400 million in its first three years because of aggressive pricing by BlueCross and the federal program’s unexpected costs. Thanks to a stabilizing market, company decisions, and changes to Obamacare, the provider has broken even after the original losses.
The rebates reflect adjusted premiums for medical coverage in 2018. They do not reflect how much each policyholder paid or other coverage areas, such as dental care.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
This story has been updated.
-
Understanding Customer Orientations: Cost, Value, and Technology
Orientation of customer means how the customer’s preferences are possessed or in what areas of business the customers are conscious. A customer can be cost oriented, value oriented or technology
-
Customer Profiling: Identify, Attract & Retain Your Ideal Customers
For a developing business it is very important to understand who are the best customers, how to find more customers like these and where to find. Customer profiling is the best strategy to accomplish
insurance
- £18 Million Cryptocurrency Seized in UK Scam Investigation
- Affordable Care Act (ACA) Premiums See Slight Decrease in 2020
- Understanding Insurance Premiums: Factors & How They're Determined
- Understanding Annuity Premiums: Types & Calculation
- Understanding Annual Premium Equivalent (APE) in UK Insurance
- Robinhood Data Breach: What You Need to Know & How to Secure Your Accounts
- Unemployment Tax Refunds: How to Maximize Your Impact | IRS Information
- Arizona Rent Relief: $22 Million Available for Pima County & Tucson Residents
- Coronavirus & Auto Insurance: Potential Premium Relief During COVID-19
-
Understanding Insurance Premiums: Types & Factors
Insurance premiums are the monies paid by individuals to insurance companies in exchange for financial security in the event of damage or a loss. Often, these premiums are dependent upon a variety of ...
-
Decamillionaire: Definition, Net Worth & How to Achieve It
What Is a Decamillionaire? Decamillionaire is a term used for someone with a net worth of over 10 million of a given currency, most often U.S. dollars, euros, or pounds sterling. The term decam...