MONTGOMERY, Alabama — The state's largest health insurance company, Blue Cross and Blue Shield of Alabama, said it won't reinstate health plans that don't comply with the federal health care law.
Blue Cross made the announcement Wednesday in response to the president's remarks last week that consumers should be allowed to renew individual plans slated to end next month under the Affordable Care Act.
"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," Blue Cross said in a statement.
Blue Cross has 87,000 policyholders in Alabama with policies that didn't comply with the federal law, and they are being moved to new policies.
Blue Cross said reinstating the old policies for one year would create significant legal and financial risks. "The ultimate impact would be higher health care costs for all of our customers, now and in the near future," the company said.
Blue Cross dominates the health insurance business in Alabama and is the only company offering individual policies in all 67 counties through the new federally facilitated health insurance marketplace.