Blue Cross and Blue Shield of Alabama continues to monitor the progress of the healthcare reform efforts underway in Washington. We fully support healthcare reform that improves the quality of medical care to all patients, reduces the overall cost of healthcare, and expands coverage to more Alabamians. For more than 70 years, we have been working to make these types of healthcare improvements a reality in our state.
However, we are concerned about some of the pending federal legislation being debated in Congress having a negative impact on our customers and the State of Alabama. For example, some proposals would create a new government-run plan that would jeopardize affordability and access to coverage for the 160 million people who receive their benefits through employers today.
Other provisions would allow people to wait until they need medical care to buy health insurance, making healthcare coverage much more expensive for everyone.
Recent Oliver Wyman Reports show the overall effects some of these provisions would have on individuals, families and small businesses. Experts project the pending healthcare reform bills will increase annual family premiums in Alabama by an estimated $2,800 for small businesses and by an estimated $3,500 for individuals, who purchase new coverage within five years of enactment. This is a 29% increase in family premiums for small businesses and a 69% increase in family premiums for individual plans, making healthcare coverage unaffordable to many Alabamians.
When these proposals begin to tip the scales and force the cost of premiums to rise, we believe it is our responsibility to let you hear directly from us on how this could impact you, your families and small employers. I also want to share with each of you some important facts about our company.
As we move forward during these uncertain times, please know that we are committed to improving healthcare for the 2.4 million individuals we cover in Alabama. Blue Cross has worked hard to earn the trust and confidence of our customers, and we thank you for choosing us to administer your healthcare coverage.
Sincerely,
G. Phillip Pope
President and Chief Executive Officer
Blue Cross and Blue Shield of Alabama
