Health Care Service Corp., the largest not-for-profit health insurer in the country, suffered large losses in 2014, the first year Americans could buy individual coverage through the public exchanges.
HCSC recorded a $281.9 million loss in 2014, compared with a $684.3 million surplus in 2013—a swing of almost $1 billion. The losses were somewhat expected.
Chicago-based HCSC, the Blue Cross & Blue Shield insurer for Illinois, Montana, New Mexico, Oklahoma and Texas, said the inaugural year of the Affordable Care Act's exchanges disrupted the insurance industry, particularly the individual market. Medical claims were up significantly, reflecting the needs of a sicker membership. HCSC's prescription drug costs rose 43 percent.
Blue Cross & Blue Shield of Texas, for instance, lost almost $400 million on individual policies in 2014. Claims outpaced premiums by $280 million at Blue Cross & Blue Shield of Illinois.
(Excerpt) Read more at chicagobusiness.com ...
