Blue Cross & Blue Shield of Rhode Island has enacted a policy change to enable small businesses with 25 or fewer employees to cover eligible workers who fall below 185 percent of the poverty level through the state’s RIte Care program and maintain Blue Cross coverage for those not eligible for the state plan. Under its former policy, small businesses that offered Blue Cross had been required to cover all of their workers through the Blue Cross plan. This protected the insurer from “adverse selection” – where only those employees with costly health care needs stayed with Blue Cross and others opted not to participate in the company’s health plan.
The former policy also precluded employers from assigning eligible workers to RIte Care.
”This new policy underscores our commitment to support the RIte Care program as a safety net for the people of Rhode Island,” said Ronald A. Battista, president and chief executive officer at Blue Cross & Blue Shield of Rhode Island.
Blue Cross participates in RIte Care, covering 4,700 members in the program. However, as part of its overall plan to stem recent financial losses, Blue Cross has been closed to new RIte Care members for some time. Battista said Blue Cross would look to reopen RIte Care enrollment if it is able to secure additional reimbursement from the state.
