Premera Blue Cross Exiting Medicare Advantage Market in 2025

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Oct 01, 2024, 11:00 ET

Health plan to prioritize growth across its other core lines of business

MOUNTLAKE TERRACE, Wash., Oct. 1, 2024 /PRNewswire/ -- Premera Blue Cross, a leading health plan in the Pacific Northwest, announced today that it will no longer offer Medicare Advantage plans starting January 1, 2025. This strategic decision is influenced by changing market conditions, and financial pressures.

By exiting the Medicare Advantage market, Premera plans to redirect its resources toward other growing business lines, such as employer-sponsored health plans, Medicare Supplement plans, and plans offered under the Affordable Care Act. This shift will enable Premera to invest in innovative solutions and programs aimed at increasing access to affordable healthcare.

"This was an incredibly difficult decision, particularly given our position as the only local commercial health plan in Washington and our commitment to serving our community. Despite our best efforts, the challenging market and financial constraints have made the long-term success of our Medicare Advantage program unsustainable," said Jeffrey Roe, President and CEO of Premera Blue Cross. "Through the remainder of 2024, our commitment to our Medicare Advantage members is unwavering. We'll continue to ensure they receive the excellent service they have come to expect with Premera."

Currently, nearly 32,000 members in 14 Washington counties have a Premera Medicare Advantage plan, which is a small portion of Premera's overall 2.75 million members. Importantly, Premera is not exiting the senior market and will maintain its Medicare Supplement business. The company currently serves more than 58,000 Medicare Supplement members across Washington and Alaska.

Premera is committed to supporting its Medicare Advantage members during this transition, ensuring uninterrupted service through the end of 2024. Local insurance brokers will be available to assist members with new coverage options for 2025. The annual enrollment period runs from mid-October to early December.

About Premera Blue Cross
Premera Blue Cross, a not-for-profit, independent licensee of the Blue Cross Blue Shield Association based in Mountlake Terrace, Wash., is a leading health plan in the Pacific Northwest, providing comprehensive health benefits and tailored services to more than 2.75 million people, from individuals to Fortune 100 companies. For more information, visit www.premera.com.

SOURCE Premera Blue Cross