Vermont Is Starving Its Blue Cross Carrier: Rating Agency

In recent years, Vermont Blue “has reported sharp losses in underwriting results, where in some cases the organization’s investment income did not provide a sufficient hedge to stabilize pre-tax operating performance,” AM Best said.

The poor underwriting results over the past four years have been caused primarily by “being unable to receive adequate rate increases approved through the state’s rate review process,” AM Best said.

Vermont Blue and its subsidiary, the Vermont Health Plan, provide health coverage for about 80,000 Vermont residents.

Vermont Blue reported $7.6 million in net income for 2017 on $578 million in subscription revenue, according to a financial statement prepared using Vermont’s statutory accounting rules. That compares with a net loss of $9.7 million on $566 million in subscription revenue for 2016.

— Read Watchdog: Vermont’s ACA Exchange Had Big Problems in 2014, on ThinkAdvisor.

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