Health insurance rates for small businesses in Michigan will increase an average of 4 percent for 2018.

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Blue Cross Blue Shield of Michigan and Priority Health remain committed to selling individual health policies on the state’s public insurance exchange, even as a chief competitor opts to drop out of the market for next year.

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The losses health insurers in Michigan incurred last year on individual policies led to the large rate increases proposed for 2018 and moved the market to a “very delicate point,” according to one industry analyst.

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Blue Cross Blue Shield of Michigan credits closer ties with doctors and hospitals to drive efficiency and quality improvements with leading to lower rates for small businesses.

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Blue Cross Blue Shield of Michigan made $122 million in 2016 across all of its businesses, although the state’s largest health insurer again lost money on health insurance policies.

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