Blue Cross Blue Shield CEO: ‘Preparing For More Options Than Just One’

The CEO of the state’s largest health insurance provider said that variables and options surrounding health insurance reform have made business planning tricky, but he expects more of the same uncertainty as a state task force grapples with a restructuring of Arkansas’ health care system.

Appearing on this week’s edition of Talk Business & Politics, Arkansas Blue Cross Blue Shield president and CEO Mark White said that the last several years have been tumultuous for his firm and the entire industry.

“Our focus has been on understanding the variables and how to deal with those,” he said, citing enrollment problems due to Healthcare.gov and communication challenges in reaching newly enrolled populations.

While the state’s private option has enrolled nearly 220,000 new Arkansans into health plans, there are still an estimated 200,000 not covered by health insurance. Larger numbers spreads more risk and gives more stability to the insurance markets, but does it drive costs lower?

“That increases the expectation of what we think costs will be, from a standpoint if you have smaller numbers you’re going to have more variation from month-to-month or year-to-year,” White said. “So yes, it helps.”

White says the Private Option solution has been beneficial for the state’s health care network, especially from an economic impact level.

“I would say it’s been good for Arkansas from the standpoint of well over 220,000 Arkansans who now have coverage that did not have it before. It’s been a major boost for our hospitals and physicians who historically have delivered a lot of uncompensated care that they’re now paid for,” he noted.

He also said he’d like to see some form of continuation of the program emerge from the task force that Gov. Asa Hutchinson created to craft a solution to ending the Private Option and overhauling the state’s Medicaid program.

“We’re still preparing for more options than just one, so it’s a little murky from our perspective. I would think there is a program that would work for Arkansas, that would help us achieve a nearly fully insured population. To me, that’s good,” said White.

“I would like to see some form of a continuation of a program that’s going to bring more Arkansans into health care coverage than we’ve had historically. It’s important for them, it’s important for their health and wellness long-term. My view is that healthier citizens are more productive citizens and will help the overall economy.”

Watch his full interview below.