We all want a health care system that performs at its best.
To serve our members and advance our nonprofit mission, Blue Cross advocates for public policies that ensure access to affordable, high quality health care for our members and their communities. We want everyone to have access to a range of high quality, affordable coverage options, so they can access the care they need.
Blue Cross has been a leader in health reform and prevention efforts at the state and federal levels. We’ve shown this commitment by working with stakeholders to advance policies that benefit all Minnesotans – not just our members.
Policy facts and insights
Where do your premiums go?
Blue Cross is a nonprofit organization, which means our resources are used to serve our members, not shareholders. Our low administrative costs mean 90 cents of every premium dollar goes to pay for care. Rising prices for health care and prescription drugs and increased usage of services continue to make health care more expensive for Minnesotans. Here is how the premium dollar breaks down:
The Affordable Care Act
Under the Affordable Care Act, many Americans gained access to health insurance who were previously uninsured. Rising costs, especially in the individual market, require us to look at ways to improve upon the law without losing gains in coverage. Changes to the Affordable Care Act must provide immediate stability to the individual market, financial support for families with low and moderate incomes purchasing coverage on their own, and ongoing federal support for Medicaid. Furthermore, any changes should ensure there is an adequate timeline for transitioning to the new system. Ultimately, the long-term success of reform depends on addressing the underlying costs of health care, which depends on collaboration among all stakeholders across the health care system.
Having affordable health insurance is in everyone’s best interest. However, low enrollment in the individual market and increasing medical expenses have driven premiums to increasingly higher levels. Immediate relief in the form of reinsurance, tax credits and cost sharing subsidies is needed to provide stability to this market.
We support high-quality, affordable and financially sustainable health care programs for Minnesotans who are unable to afford commercial coverage. The federal government should adequately fund Medicaid, so it can remain a viable safety-net for those who rely on the program.
Investing in Health
Blue Cross has a long history of working to protect Minnesotans’ health through support of clean indoor air and reduced exposure to tobacco products, and advocacy for policies that support healthy eating and increased physical activity.
- Sufficient enrollment is needed for stable and predictable claims
- Protections for individuals with preexisting conditions need to be complemented by measures that attract healthy individuals for a balanced risk pool.
- “Premiums are set to cover projected medical claims and expenses.”
- “Premiums reflect the underlying medical costs of the enrollee population”
- Silver plans would have to increase by about 19 percent on average to compensate for the loss of CSR payments.
- While the federal government would save money by not making CSR payments, it would face increased costs for tax credits.