Michigan Blue Cross Blue Shield Returning Excess To Subscribers
Blue Cross Blue Shield of Michigan and Blue Care Network are refunding portions of premium payments. Caseloads and claims are down. Blues President and CEO Dan Loepp says his leadership team is pretty confident that premiums coming in far exceed what will be going out in coverage payouts. The estimated returns are pegged at about 100 million. And the returns are on top of about $494 million BCBSM is investing in no-cost benefit availability for members and in support of providers relating to the COVID-19 virus outbreak.
The Blues are Michigan’s largest health insurer. It is returning the money to group health plan businesses, along with companies that offer employees vision and dental coverage and subscribers with the Medigap program. Almost a quarter million individual subscribers with Affordable Care Marketplace plans are also going to see refunds. The money will be paid out in either refunds, or premium credits on upcoming invoices.
BCBSM will continue to monitor claims trends throughout the remainder of the year affecting potential relief for 2020 individual health plan members and fully insured larger group customers with more than 50 employees. For individual plans, BCBSM continues to work with the federal Centers for Medicare and Medicaid Services (CMS) to seek regulatory guidance for potentially issuing some form of financial relief this year – with concern for not jeopardizing members’ eligibility for Advance Premium Tax Credits if refunds are granted. If claims trends remain lower, the company may take additional actions to provide relief this year to individuals and larger fully insured group customers.