by Ted Tripp
Sr. Political Reporter
Last month, Massachusetts’ three biggest health insurers reported losses of $201 million for the first six months of 2016, blaming ObamaCare and the cost of prescription drugs.
The state’s largest insurance company, Blue Cross Blue Shield of Massachusetts, had a loss of $98.3 million for the first half of this year. BCBS had a loss of $124.9 million for the same period last year.
Tufts Health Plan recorded a loss of $65.5 million for the first six months, more than twice the $29.9 million reported for the same period last year.
Harvard Pilgrim Health Care reported losses of $37.3 million in the first six months, up from $29.8 million from the same period last year.
Blue Cross Blue Shield of Massachusetts has 2.8 million members in the state, Tufts has one million plus, and Harvard Pilgrim has 1.3 million members.
Although there are some ObamaCare reimbursement programs from the federal government, they do not come close to covering the losses incurred by the companies.
While the insurers will continue to try to contain or reduce costs wherever they can, there are really only two good options they will be forced to take. One is to increase the premiums significantly, up the deductibles, limit the networks further … or all three. The other is to withdraw from the ObamaCare exchanges like so many other companies have already done all across the country. The latter, however, might be very difficult if these Massachusetts-based companies cannot generate revenue elsewhere.
In either scenario, it is the average person – sick or otherwise – who will take the brunt of the decision.
How is Obama’s $2500 premium savings working out for you under the new healthcare law? And do you still have the same doctor before ObamaCare took over? ♦
by Ted Tripp