MEMPHIS, Tenn. -- BlueCross BlueShield of Tennessee will no longer offer insurance through the Affordable Care Act in Memphis, Nashville and Knoxville starting in 2017.
A large taxpayer subsidy to insurance companies taking part in the ACA ends in 2016, which means they could incur large losses.
"BlueCross committed early to the ACA Marketplace and has been the only health insurer to offer coverage options in every region in the state since 2014. And we have experienced losses approaching $500 million over the course of three years on ACA plans, which is unsustainable."
Those able to keep their ACA plans could see large increases in premiums.
"We have tried to make the ACA Marketplace model work for Tennessee, but we believe there are too many uncertainties to continue participating on a statewide level as we have before. We’ve made this difficult decision carefully, with the intention Tennesseans in every Marketplace region will still have an option for individual coverage under the ACA."
The does not affect seniors with Medicare Advantage plans, those enrolled with BlueCare or anyone who has insurance through their employer.