The Next Step into Socialized Medicine – Blue Cross Blue Shield Drops PPO

When Obamacare went into existence, you had to know that drastic changes were going to take place with health insurance.  Socialized medicine is not remotely possible without significantly changing the system.  I just would have never dreamed that we would see it this soon.  Already costs have risen dramatically and will continue to do so.

Blue Cross Blue Shield one of the largest writers of individual health insurance announced that they would be dropping their PPO plans.  However, they will be keeping their HMO plans.  What does that mean?  In a PPO, individuals can chose their doctor.  PPO’s are about choice. HMO plans are not about choice.  They are about choices being made for you.

Doctors have been leaving the HMO networks right and left after Obamacare came into existence because the insurance companies don’t pay hardly anything.  Of course, that is the exact reason why BCBS made the decision.

The bottom line is the bottom line.  They are paying out way more in claims than they are collecting in premiums.  They lost 400 million in Texas.

Those losses come after large premium increases last year for individual health insurance holders.  Of course, those increases were determined on the income levels of each region. The poorer regions didn’t see increases.  The higher income levels received the biggest increases.

What will all of this mean?  For the 367,000 Texas insureds it means they will be forced to find another plan.  What does it mean for doctors?  It looks like they will be facing a hard choice.  Do they join the HMO network and accept less or do they snub one of the largest writers of health insurance?

In reality, it only affects 367,000 people in a state whose population is 26 to 27 million. However, that is not the point.  It is the shot across the bow and maybe where all insurance companies will eventually go.  It could be the next step in the socialization of the healthcare industry.

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