Blue Cross Blue Shield insurers are making money on the ACA
We reported earlier this month that the large publicly traded health insurance companies have reaped enormous profits so far in 2017. But the not-for-profit Blue Cross Blue Shield plans — the ones that have been the linchpins of the volatile Affordable Care Act marketplaces — have been doing a lot better than last year, too.
In states where a Blue Cross Blue Shield affiliate was the only ACA option, each company turned a net profit in the first quarter, according to an Axios review of financial documents. That's a big turnaround from last year, when most of them lost money.
What it means: The ACA's individual marketplaces have problems, but they are not in a "death spiral," nor are they imploding. The latest financial data also indicate that many Blue Cross Blue Shield plans — even the most vulnerable — have figured out how to make money on ACA plans, and illuminate why the entire industry wants to eliminate the ACA's insurer tax permanently.