Chattanooga-based BlueCross BlueShield of Tennessee refunds $22.6 million to policy holders
For the first time since introducing the Marketplace plans for individuals under the Affordable Care Act in 2014, Tennessee's biggest health insurer is having to refund some of what it charged its customers last year because it didn't pay out enough of its premium income in health care costs in 2018.
BlueCross BlueShield of Tennessee mailed out insurance rebates Monday totaling $21.4 million to individual policy holders, and another $1.2 million was mailed to small group employers. The rebates are coming on top of an average 14.9% cut in rates implemented this year by BlueCross under its Marketplace plans.
The Chattanooga-based BlueCross began offering the only statewide coverage under the Affordable Care Act, or Obamacare, five years ago when the Marketplace plans were initiated in Tennessee. Due to its initial aggressive pricing and unanticipated expenses and changes in the new federal program, BlueCross initially lost more than $400 million on its Obamacare coverage in the first three years.
Read more from our newspartners at the Chattanooga Times Free Press.