BCBS plans in several states won’t accept credit cards for insurance payments

Citing losses related to offering coverage on the Affordable Care Act marketplaces, Blue Cross Blue Shield (BCBS) has announced its plans in Illinois and several others will no longer accept credit cards as a form of payment for people who buy insurance on or off the exchange, according to the Chicago Tribune.

In April, the company began notifying customers of the policy change, which goes into effect June 1. It won’t affect consumers in group or Medicare markets, and debit cards will still be accepted for all customers.

“We're trying to identify any avenue we can to lower administrative expenses that don't impact quality of care," said BCBS spokeswoman Jill Wolowitz, according to Tribune, though she reportedly declined to say how much the company spends on credit card fees.

BCBS plans in Montana, New Mexico, Oklahoma, and Texas are adopting the same policy.

Moves to keep costs down to counter losses on exchange business have been common, with companies such as UnitedHealth leaving marketplaces in most states. A March 2016 report on BCBS policyholders released earlier this year said those newly insured through the exchanges have higher rates of diseases, needed more medical services, and required more costs for care than those who had been previously covered through an individual or group plan.