Reinsurance losses in excess of $60 million mount ten months into a 12 month contract on a level funded block of business for Texas school districts?
If true, and with runout liability factored in, will this be the biggest reinsurance loss in the history of self-funded group health insurance?
We expect final losses could easily exceed $100 million and as much as $150 million.
Its our understanding Highmark and BCBSAL share risk on a 75/25 quota share. If true neither of these Blue Cross insurers can be happy. The good news, if there is any, is one is 50% happier than the other.
One wonders how the underwriters missed the mark on this one.
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