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