KRQE: Blue Cross and Blue Shield of New Mexico announced on Wednesday it “will not offer individual on-exchange health insurance products on the New Mexico Health Insurance Exchange in 2016.”
Officials say the rates of Blue Cross and Blue Shield of New Mexico did not cover the claim costs in 2014 and 2015 according to Albuquerque Business First.
“BCBSNM is extremely disappointed that we will not be an option for our customers on the New Mexico Health Insurance Exchange in 2016. We have been serving New Mexicans for 75 years and we hope to provide more options to individuals in the future,” said Kurt Shipley, president of BCBSNM. “While we are committed to helping communities expand access to health insurance, we cannot offer products in a sustainable and predictable manner without adequate rates. We will continue to offer an HMO product off-exchange in 2016, which will be available to all consumers.”
Earlier this month, the Office of the Superintendent of Insurance denied requests for a rate increase that would have helped cover the costs.
Authorities with BCBSNM said that policies for individuals will still remain in effect through the end of 2015. Also, non-individual policies may not be affected by the changes.
According to Albuquerque Business First, about 35,000 people are enrolled in the individual plans.
As reported via Twitchy:
“The letter said Blue Cross Blue Shield of New Mexico lost $19.2 million in 2015 on the 35,000 individuals covered by plans they purchased on and off the exchange. “We were unable to reach an agreement with the Office of Superintendent of Insurance … that would allow us to continue to offer coverage on the state’s health insurance exchange with rates that would be adequate to cover the anticipated needs of our members for the coming year,” Shipley wrote.”
DCG
