Group employment expert explains what employers and employees need to know about the future pricing of the group health plan
Blue Cross Blue Shield is proposing premium cuts in many states across America for 2019, with some states seeing as much as a 5% decrease or more. However, there could be more to this story than meets the eye.
“Blue Cross is cutting prices now because they over-estimated how much they needed to hike their premiums last year,” explains Rob Wilson, President of Employco USA and group employment expert. “They set the rates too high, which is understandable as there was so much uncertainty over the fate of the Affordable Care Act and how President Trump would alter Obamacare. But, now that we have a clearer picture of the fate of the Affordable Care Act, Blue Cross can go back to rectify their initial over-estimation.”
Wilson says that, regardless of the cause, a decrease in premiums is nearly unheard of, and a hopeful sign of things to come.
“Blue Cross has not reduced the cost of their premiums in years,” says Wilson. “For example, in Illinois, my home state, premiums have been going up every year, in some cases even jumping up by 17 percent such as in 2015. So, for people of Illinois to finally see price decreases is simply unprecedented.”
Wilson says even the states in which Blue Cross Blue Shield is proposing premium increases don’t have to fear. “Not every state is going to see a decrease in Blue Cross Blue Shield premiums in 2019, and some may even see an increase, but this increase will be very slight.”
For more on this topic, please contact Rob Wilson at firstname.lastname@example.org.