Blue Cross Blue Shield of Ala. won't reinstate non-compliant hea -, GA News Weather & Sports

Blue Cross Blue Shield of Ala. won't reinstate non-compliant health plans

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Blue Cross Blue Shield of Alabama headquarters. Source: WBRC video Blue Cross Blue Shield of Alabama headquarters. Source: WBRC video

Blue Cross Blue Shield of Alabama announced Wednesday it will not reinstate health plans that do not comply with the Affordable Care Act.

The company announced the decision in a statement released around 3:30 p.m. today.

Last week President Obama announced that people could stay on their current plans for one year if insurance companies would allow it.

So why is the state's largest insurer saying "no" to President Obama's request?

In its statement, Blue Cross Blue Shield says a temporary reinstatement of policies could destabilize the state's insurance market and lead to higher healthcare costs.

It also says a one year continuation could create legal risks to policyholders the state and their company.

BCBS of Alabama says they did not get to this point easily and that they've been in constant talks with Alabama's Department of Insurance.

Blue Cross says across Alabama, they offer every category of coverage that complies with the Affordable Care Act and they hope customers will find an appropriate option.

FOX6 News contacted BCBS of Alabama but they said they will not comment on camera about this.

Read the full statement from BCBS of Alabama below:

Blue Cross and Blue Shield of Alabama Responds to Administration's Recent Announcement

BIRMINGHAM, AL – Blue Cross and Blue Shield of Alabama will not reinstate current health plans that do not comply with the requirements of the Affordable Care Act (ACA). The company has worked for the last three and a half years to develop an array of plans that continue our commitment of providing comprehensive, reliable coverage for the healthcare needs of all of our customers at the most affordable cost possible.

The temporary reinstatement of policies that are non-ACA compliant would create dual classes of policyholders and destabilize the state's insurance market and the risk pools associated with these health plans. The ultimate impact would be higher healthcare costs for all of our customers, now and in the near future.

We have not reached this conclusion easily and have been in continuous consultation with the Alabama Department of Insurance in evaluating all options. A one-year continuation of policies that violates the ACA's requirements could create significant legal and financial risks to our policyholders, the state and our company.

In our 77-year history, Blue Cross has never cancelled a member's coverage because of declining health status or charged an individual higher premiums because of the presence of any medical condition. Blue Cross is the only company that offers ACA-compliant healthcare coverage in every category in every county in Alabama. We hope our current and future customers will find one of these options appropriate for themselves, their families or their businesses.

The political landscape around healthcare reform is still changing. We will continue to efficiently respond to the needs of our customers, operate in the best interest of all the state's residents, and provide peace of mind to our covered members.

Congressman Robert Aderholt issued the following statement in response to BCBS of Alabama's decision:

"If you look beyond the problems associated with the website, the bottom line is that the things we have been warning about Obamacare are now coming true," said Aderholt. "The reason that the insurance companies cannot offer the same plans for the same price is that Obamacare changed the cost equation. Despite whatever the President wants to say, the actual numbers don't add up."

"Healthcare is complicated and you cannot make policy changes at the drop of a hat. Further, despite his best efforts to create one, there is no 'magic wand' available to the President to waive away unworkable portions of the law without Congress. Quite frankly, the President is now seeing what many Democrats in Congress have already accepted, Obamacare just plain does not work."

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