Feds Not Paying Insurance Companies Subsidies

[bluemarlin08]

Spoke with my contact at Blue Cross yesterday and they are in panic mode. I was informed that the Feds have not reimbursed BC for hundreds of million dollars of subsidy funds. They don't know how long they will stay in the marketplace and prepared to lose thousands of members due to the 60% rate increase for 2017. They are reducing the number of policies that will be offered and considering whether to even offer any policies in certain areas. I was told they anticipate many folks to migrate to sharing ministries even though they won't have any contractual guarantees. Few options available if a member has any medical history. We are on the precipice of a complete failure in health insurance.

 

[Alston]

The subsidies you mention are not the APTCs are they? I had heard that there was another type of subsidy that the carriers were to supposed get that was to offset their claims but that congress didn't authorize this subsidy beyond the first year.

Is this what you are talking about or did I remember this wrong?

 

[KennyWest]

What he is referring to is NOT the subsidies paid on behalf of insureds to lower their premiums. He is referring the MLR offsets HHS pays which some carriers say they have been shorted on.

 

[bluemarlin08]

I think you both are correct. My contact was so upset and wasn't very clear. She mentioned they were owed about 600 million dollars and that she was aware of companies in 35 other states that had not been paid.

 

[Yagents]

China called. The credit card expired.

 

[russelltw]

Our Blue is suing the feds for the money.

Blue Cross sues feds for ACA payments | News & Observer

From what I have heard, they have received $0.13 for each $1 owed by the Feds.

 

[Post Quartermaster]

Spoke with my contact at Blue Cross yesterday and they are in panic mode. I was informed that the Feds have not reimbursed BC for hundreds of million dollars of subsidy funds. They don't know how long they will stay in the marketplace and prepared to lose thousands of members due to the 60% rate increase for 2017. They are reducing the number of policies that will be offered and considering whether to even offer any policies in certain areas. I was told they anticipate many folks to migrate to sharing ministries even though they won't have any contractual guarantees. Few options available if a member has any medical history. We are on the precipice of a complete failure in health insurance.

It would be helpful if you mentioned what state you are referring to when posting about a BCBS plan......

I'm gonna go out on a limb and guess North Carolina.

If so, this is pretty old news.....here's the presser from June:

BCBSNC Sues Federal Government for Risk Corridor Payments Owed | Blue Cross Blue Shield North Carolina


Just remember who to thank for this mess.......Marco Rubio claimed credit for modifying the reinsurance corridor program so that it MUST remain revenue neutral as part of the 2014 CROMNIBUS bill. This is what tanked many of the Co-Ops. Of course, the counterargument to this is that various Democrats said it would be a revenue neutral program during the drafting phase of the ACA, however, the program wasn't legislated that way.



"When they passed Obamacare, they put a bailout fund in Obamacare," Rubio said while addressing frontrunner Donald Trump on Feb. 25, 2016. "All these lobbyists you keep talking about, they put a bailout fund in the law that would allow public money to be used, taxpayer money, to bail out companies when they lost money. We led the effort and wiped out that bailout fund."

Marco Rubio: We 'wiped out' Obamacare 'bailout fund' for insurance companies | PolitiFact

 

[TN_agent]

I believe bluemarlin08 is from my state.

 

[Yagents]

Last time I checked, the Senate could have filibustered, and Obama could have vetoed Cromnibus. Were they completely blind to the poison pill right in front of him to torpedo his own plan? Or, was extending NGF plans the real self inflicted culprit?

This is the one of the few changes in ACA that have passed all 3 chambers. Attaching it to a larger bill is the only way to get anything passed these days.
Expect more in the upcoming budget battle.

 

[kgmom219]

Just remember who to thank for this mess.......Marco Rubio claimed credit for modifying the reinsurance corridor program so that it MUST remain revenue neutral as part of the 2014 CROMNIBUS bill. This is what tanked many of the Co-Ops. Of course, the counterargument to this is that various Democrats said it would be a revenue neutral program during the drafting phase of the ACA, however, the program wasn't legislated that way.



"When they passed Obamacare, they put a bailout fund in Obamacare," Rubio said while addressing frontrunner Donald Trump on Feb. 25, 2016. "All these lobbyists you keep talking about, they put a bailout fund in the law that would allow public money to be used, taxpayer money, to bail out companies when they lost money. We led the effort and wiped out that bailout fund."

Marco Rubio: We 'wiped out' Obamacare 'bailout fund' for insurance companies | PolitiFact

PREACH IT!!!!

BCBSTX got 12.3 cents on the dollar.

And irregardless of your thoughts on this trainwreck, the 2014 rates (when all the transplants happened in January) were based on the reinsurance corridor. Rubio got it pulled and now we are looking at 1 carrier choices and 55% increases. That isn't right. No matter what your politics.