Datapoint: BlueCross BlueShield of Vermont Facing Potential Insolvency

BlueCross BlueShield of Vermont is in financial trouble, according to a July 29 report in the Burlington Free Press. While state officials told the outlet they are confident the insurer will remain solvent, CEO Don George in an open letter called for premium increases due to the company’s “fragile” financial state. “Since May, health care claims have increased dramatically, and our member reserve levels have declined precipitously,” George wrote. “This is in addition to underwriting losses in five of the last six years, leaving us without the means to weather this downturn with existing member reserves. The cumulative impact of underfunded premiums − despite our consistent advocacy for rates that fully fund the cost of our members’ health care − has created this fragile financial situation.” BlueCross BlueShield of Vermont is the largest insurer in its home state, serving 170,199 members. That’s about 29% of Vermont’s insured population.

Source: AIS’s Directory of Health Plans

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