BlueCross BlueShield of Tennessee announced it would longer offer coverage through the Obamacare exchange in Tennessee's three largest metro areas.
The company made the announcement Monday that it had plans to pull out of Memphis, Knoxville, and Nashville in 2017, forcing more than 100,000 people to move to new plans under new insurers.
"We're limited, unfortunately, in terms of being able to offer the kinds of solutions that could alleviate that situation," said Kevin Walters, spokesman for the Tennessee Department of Commerce and Insurance. "What we're doing is hopefully trying to ensure that there are coverage options across the state and that they do remain intact."
Walters said two companies, Humana and Cigna, will continue to offer coverage through the Obamacare exchange. However, the decision by BlueCross BlueShield will leave 73 counties with only one company to choose for coverage.
BlueCross Blueshield of Tennessee cited financial losses as the company's reason for scaling back coverage, reporting nearly $500 million in losses over the last three years.
The company will continue to serve nearly 80,000 Tennesseans in mostly rural areas.
"We have tried to make the ACA Marketplace model work for Tennessee, but we believe there are too many uncertainties to continue participating on a statewide level as we have before," said Roy Vaughn, senior vice president for BlueCross Blueshield Tennessee. "We’ve made this difficult decision carefully, with the intention Tennesseans in every Marketplace region will still have an option for individual coverage under the ACA."
People affected by the change will be automatically moved to a new plan for 2017, unless they choose to re-enroll on their own. Open enrollment will be available at healthcare.gov beginning November 1.
