HARRISBURG, Pa., Aug. 7, 2020 /PRNewswire/ -- Capital BlueCross today announced its proposed rates for individual health insurance coverage will decrease by double digits in 2021, marking the third straight year its rates would decrease or remain stable.
The latest proposed rate decrease reflects the insurer's ongoing commitment to making health insurance affordable, particularly in the current economic climate, said Capital BlueCross President and CEO Todd Shamash.
"We realize the COVID-19 pandemic has taken a severe financial toll on many Pennsylvanians, and the impact is likely to continue into next year," Shamash said. "We are committed to helping our current and future members through these challenging times, and part of that commitment is offering quality, affordable coverage."
Capital BlueCross' proposed individual rates for 2021 are on average 14% lower than 2020 rates. Additionally, proposed rates for small group coverage (under 50 enrollees) are on average nearly 3% lower in 2021, led by a 6.9% proposed decrease in the first quarter. Capital BlueCross is one of the only insurers proposing rate reductions for small groups across all of its issuing companies.
"Maintaining affordable rates for small group employers was a priority for us, because so many of the commonwealth's small businesses have been hit hard by the ripple effects of the pandemic," Shamash said. "These small businesses are the lifeblood of our communities, and supporting the communities we serve is one of the priorities at Capital BlueCross. We want these small businesses and their employees to know we are here to help through this crisis and beyond."
The rates were reviewed by the Pennsylvania Insurance Department, which announced the 2021 requested rates this week. The proposed rates are subject to final approval by the Pennsylvania Insurance Department. New product information and approved pricing will be formally issued this fall.
Capital BlueCross issues individual health plans under its three subsidiaries Capital Advantage Assurance Company, Capital Advantage Insurance Company, and Keystone Health Plan Central.
About Capital BlueCross For more than 80 years, Capital BlueCross has served Central Pennsylvania and the Lehigh Valley by offering health insurance products, services and technology solutions that provide peace of mind to consumers and promote health and wellness for our members. The company delivers innovative solutions through a family of diversified businesses to create healthier lives and lower healthcare costs. Among these solutions are patient-focused care models, leading-edge data analytics and digital health technologies. Additionally, Capital Blue health and wellness centers provide in-person service and inspiration to help people reach their health goals. Capital BlueCross is an independent licensee of the BlueCross BlueShield Association.