Health insurer Premera said Monday it remains “committed” to selling Obamacare plans in Alaska and Washington state, crediting a cash windfall it received under the Republican-backed tax law for its decision.
The company, which is a subsidiary of Blue Cross Blue Shield, announced that it was investing $250 million over five years into the states to help stabilize the Obamacare exchanges. It vowed as well to use its tax gains to improve access to medical care in rural areas and to fund $40 million in behavioral health services, including addiction treatment and addressing homelessness.
“This refund has given us an unexpected opportunity to reach beyond our own company to further address the critical healthcare needs of the communities where we live and work,” said CEO Jeff Roe. “I am especially pleased to continue our commitment to the individual market and build stability for families in Washington and Alaska.”
Democrats have accused Republicans of working to destabilize Obamacare by repealing the fine in the law that penalized people for not buying health insurance. The repeal was part of the GOP tax bill that President Trump signed into law in December.
Insurers had warned that without the provision, known as the individual mandate, companies would look to leave the exchanges and premiums would rise, causing the number of uninsured to rise.
But other provisions in the tax law had a different effect. The law reduced the corporate rate, which has triggered announcements from other health insurers who are shifting the gains into their customers or their employees.
The law also directed the federal government to refund certain prior tax payments to eligible companies such as Premera over a four-year period.
