BCBS of North Carolina is using risk corridor funds for member retail cards

Blue Cross Blue Shield North Carolina is giving members health and wellness retail cards.

More than 600,000 eligible members of Blue Cross Blue Shield of North Carolina will receive health and wellness retail cards worth $200 million.

To qualify, customers must be enrolled in individual under 65 and fully insured employer plans, including vision and dental. The health and wellness cards will not be sent to members enrolled in Medicare, Federal Employee Program, Student Blue, State Health Plan or self-insured group medical plans.

Cards will be sent out between October 19 and November 7 and will be preloaded with a balance between $100 and $500, depending on the products the member is enrolled in. They can be used to purchase over-the-counter medications, food, baby care items, fitness equipment, vitamins and other health-related supplies. Members cannot use the cards to pay for insurance premiums, prescription drugs, tobacco, alcohol or firearms, Blue Cross NC said.

WHAT'S THE IMPACT?

Blue Cross NC received funds from the federal government in relation to a court case insurers won over risk corridor funds promised in the Affordable Care Act temporary risk corridor program, which allowed it to pay for the health and wellness retail cards.

In April, the Supreme Court ruled in favor of insurers over risk corridor payments and ordered the government to pay $12 billion to insurance companies for suffering losses in the Affordable Care Act between 2014 and 2016.

The risk corridor program was created to protect insurers from financial losses caused by participating in the ACA marketplace.

In addition to the health and wellness retail cards, Blue Cross NC is using the remaining risk corridor funds to lower individual ACA plans by an average of 1% on a statewide basis for 2021.

THE LARGER TREND

The federal government began paying the $12 billion in risk corridors payments in August.

Risk corridors were among three programs set up by the federal government in 2014 to limit the losses of insurers that entered the Affordable Care Act market.

But after the Centers for Medicare and Medicaid Services deemed risk corridors must be budget neutral, the federal government did not have all of the funds necessary to pay insurers what they were owed.

The original lawsuit was brought by Maine Community Health Options, Moda Health Plan and Land of Lincoln Mutual Insurance Company. The separate cases were consolidated as Maine Community Health Options.

The Supreme Court heard oral arguments in December 2019.

On November 10, the Supreme Court will hear oral arguments on the validity of the entire ACA.

ON THE RECORD

"We recognize the unexpected hardship and uncertainty many of our members face because of COVID-19," said Dr. Tunde Sotunde, the Blue Cross NC president and CEO. "At Blue Cross NC, we are committed to the well-being of our members and we want to help them prioritize and pay for their health and wellness during this time."

Twitter: @HackettMallory
Email the writer: mhackett@himss.org