ACA Insurers Saw Financial Success in 2017 Amid Repeal Efforts: 8 Things to Know

1. For the analysis, researchers examined financial filings for 29 regional Blue Cross Blue Shield plans
2. BCBS lost $2.5 billion on its individual market business during the first three years of the ACA marketplaces
3. However, the analysis found things turned around in 2017 as many plans posted a profit
4. Premium increases were cited as the top contributor to health plans' improvement
5. Amid the premium increases, BCBS plans, on average, used 80 percent of revenue generated from premiums to pay for medical costs in 2017
6. The analysis specifically found Health Care Service Corp. spent 77.7 percent of premiums on medical claims in 2017, improving 18.5 percent compared to 2016, and BCBS of North Carolina improved by 10
7. Still, Politico notes, eight of the 29 studied plans nearly certainly lost money in 2017 after spending more than 90 percent of premium revenues on medical costs
8. As lawmakers continue to look at ways to stabilize the insurance market, it remains to be seen how recent financial performance will factor in, reports Politico

Source: Becker’s Hospital Review
Source URL: https://www.beckershospitalreview.com/payer-issues/aca-insur...

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