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Why a health plan company’s stability matters
When you buy a health plan, you count on the insurer to be there for you. They get you fair fees from doctors, labs and hospitals. They pay your claims. They give you a safety net when unexpected healthcare costs hit hard.
No one wants to guess whether a company will be around in six months. Financial stability matters.
How to find out about a company’s stability
One protection is through each state’s Department of Insurance (DOI). The DOI oversees insurers, paying close mind to an insurer’s financial state.
Insurers set money aside—called reserves—that are there for years when claims costs are unexpectedly high.1,2 In fact, in 2015, the Arizona DOI barred an insurance company from selling on the Health Insurance Marketplace (Healthcare.gov) because it was in debt. It didn’t have enough in reserves to protect its customers.3
One more measure of stability is how long a company has been in business and met DOI financial rules.
Blue Cross Blue Shield of Arizona (BCBSAZ) is a not-for-profit insurance company that was founded in 1933. We have built a reputation for making sound choices that keep us financially strong for our customers.
We can’t predict the future. But our members can be sure that our mission, vision and values will always serve as the base for what we do.
“We have learned a lot since the ACA became law six years ago,” said Rich Boals, BCBSAZ CEO, “Foremost is that healthcare will change. That is a challenge. And we will work through it. We will think through our options and do what is right for our business and our customers,” Boals added.
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BCBSAZ Mission It is our mission to provide the best value in health insurance and related health services to improve the quality of life for Arizonans. |
Sources:
1. U.S. Insurance Financial Regulatory Oversight and the Role of Capital Requirements, http://www.naic.org/cipr_newsletter_archive/vol2_oversight.htm
2. What is a 'Claims Reserve', http://www.investopedia.com/terms/c/claims-reserve.asp
3. Obamacare-ousted Meritus seeks investment to stay alive, http://www.bizjournals.com/phoenix/blog/health-care-daily/2015/11/obamacare-ousted-meritus-seeks-investment-to-stay.html
When you buy a health plan, you count on the insurer to be there for you. No one wants to guess whether a company will be around in six months. Financial stability matters.
© Blue Cross Blue Shield of Arizona | An Independent Licensee of the Blue Cross and Blue Shield Association.
This information is provided for educational purposes only. Individuals should always consult with their healthcare providers regarding medical care or treatment, as recommendations, services or resources are not a substitute for the advice or recommendation of an individual's physician or healthcare provider. Services or treatment options may not be covered under an individual’s particular health plan.