Blue Cross Blue Shield of Michigan Decides To Raise Rates for Individual Health Insurance Policies

Blue Cross Blue Shield of Michigan Decides To Raise Rates for Individual Health Insurance Policies in Individual Health Insurance

In light of a $144.9 million loss in 2008, Blue Cross and Blue Shield of Michigan has decided to make some changes that will affect rates for their individual health insurance plans.

The Wolverine State’s largest health insurer will also stop further enrollment for a few of their older, less expensive health plans, such as the Individual Care Blue individual plan, reported the Detroit News.

There’s a catch. Before BCBS of Michigan can increase rates for their individual plans, they have to get approval from the state. So far, no word on their chances of getting these rate-ups approved, but we expect BCBS to push hard to get them.

So why does Blue Cross want to raise rates?

Because BCBS of Michigan is the state’s “insurer-of-last-resort,” they’re required by law to accept all applicants into a plan regardless of their health history.

At some point, as the insurer would point out, they’ll be paying more for health care bills then receiving revenue in health insurance premiums — which is why they want to increase rates.

They’re asking the state to raise rates for individual health plans by 56 percent, 42 percent for group conversion plans which is extended coverage from an employer after a job loss, and 31 percent for Medicare Supplement plans (also called Medigap plans).

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