by Katherine Restrepo
Director of Health Care Policy, John Locke Foundation
Now that Blue Cross and Blue Shield of North Carolina (BCBS NC) has additional claims data from the first half of 2015, the state’s largest insurer is now seeking approval for an average 35 percent increase – up from 26 percent – in order for its Obamacare exchange pool to be somewhat sustainable.
As I’ve mentioned before, the rate shock factors in the $343 million worth of Obamacare payouts received in 2014. These funds were provided under the law to prevent initial market volatility when the health insurance exchanges went live in Fall 2013.
The chart below illustrates that, even with these payouts, BCBS NC still lost $123 million from 2014 plans.
The Affordable Care Act enforces many components to uphold the health insurance exchanges, but unintended consequences are currently winning.