In what industry observers are calling a suicide mission, Blue Cross Blue Shield of North Carolina announced its plan to remain in the state insurance exchange, despite hemorrhaging more than $400 million in its first two years on the exchange.
This is good news to more than 600,000 policy holders, as Blue Cross will continue to provide coverage on the exchange beyond 2017.
However, pundits point out that Blue Cross will have a captive market, as the exit of other major players from the exchange means that 85% of the market will only have one provider to choose from.
It is also reported that the company was able to convince the state’s insurance commissioner to allow a 32.5% rate hike following the exit of UnitedHealthcare and Aetna from the exchange.
