Sen. Lamar Alexander will hold bipartisan hearings in early September in a last minute attempt to assure insurers of the federal government’s commitment to the individual market, and pave the way for states to ask for flexibility on insurance benefits.
Alexander, R-Tenn., is looking to drum up support for a “bipartisan way to get a limited result that actually helps people” after tumultuous months of heated debate over whether to repeal-and-replace the Affordable Care Act that ultimately handed the Republicans a defeat.
Alexander wants to extend cost-sharing reduction payments through 2018, and change a section of the ACA to give states more flexibility.
The timing will be difficult, he said, but necessary.
He preferred a repeal, but now wants to make sure that insurers don’t have a reason to decide last minute to pull out of the exchange
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Tennessee taxpayers, beware. President Obama’s administration is quietly implementing one last massive taxpayer-funded bailout for special interests.
This bailout would prop up the Affordable Care Act only months before the law will likely be repealed.
So which special interests are getting your money? Health-insurance companies. Six years ago, health insurers were some of the Affordable Care Act’s biggest fans. They lobbied for the law because they thought it would be a financial windfall — it literally forces Tennesseans to buy their product.
But instead of finding gushers of cash, they’re drowning in red ink. Health insurers in Tennessee and across the country lost $3.2 billion in 2014 and over $10 billion in 2015. This year’s losses will be even higher.
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BlueCross BlueShield of Tennessee sent shock waves Monday across Tennessee with the company’s decision to exit the Obamacare exchange in Nashville, Memphis and Knoxville, a move that highlights persistent volatility in the young health insurance marketplace.
Three years into the Affordable Care Act exchange, the state’s largest insurer is grappling with hefty losses and ongoing uncertainty on the marketplace. BCBST is open to coming fully back into the market once uncertainties about policies and the membership wane.
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On Tuesday, Commissioner Julie Mix McPeak, who runs Tennessee’s Department of Commerce and Insurance, announced that her department was approving massive premium increases for insurers providing individual health insurance policies through the Patient Protection and Affordable Care Act exchange in the state.
The percentage increases are stunning and prompted the commissioner to put them in context. Her context was more stunning than the increases themselves.
“I would characterize the exchange market in Tennessee as very near collapse,” McPeak said.
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Tennessee’s insurance regulator approved hefty rate increases for the three carriers on the Obamacare exchange in an attempt to stabilize the already-limited number of insurers in the state.
The rate approvals, while a tough decision, were necessary to ensure that consumers around the state had options when open enrollment begins in November, said Julie Mix McPeak, commissioner of the Tennessee Department of Commerce and Insurance. BlueCross BlueShield of Tennessee is the only insurer to sell statewide and there was the possibility that Cigna and Humana would reduce their footprints or leave the market altogether.
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In an effort to prevent more insurers from abandoning the Obamacare exchange in Tennessee, the state’s insurance regulator is allowing health insurers refile 2017 rate requests by Aug. 12 after Cigna and Humana said their previously requested premium hikes were too low.
Cigna and Humana filed to increase last year’s premiums an average of 23 and 29 percent, respectively, on June 10. But in the interim, both insurance companies have told state regulators that the requests would not cover the expected claims, said Kevin Walters, spokesman for the Tennessee Department of Commerce and Insurance.
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