Excellus President and CEO Jim Reed said the payer is seeing significant increases in “high-cost inpatient hospital utilization, outpatient surgeries on hips and knees, and new prescription medication,” according to the report.
The payer took in $6.6 billion in premiums, which was unchanged from 2022, according to the report. The company spent $6.2 billion in medical costs, up $270 million from 2022.
Excellus said that 93 cents of every premium dollar went to medical care in 2023.. Of that, 69 cents went to hospitals and doctors; 14 cents paid for prescriptions; 6 cents went toward ER visits, labs, ambulances and related professional services; and 4 cents went to other medical costs.
Mr. Reed received more than $3.5 million in total compensation, mostly in bonus pay and other compensation, according to the report. Overall compensation for the company’s 10 highest-paid executives increased by 41%. Executive compensation is determined by the company’s board of directors “based on comparable market data and performance,” company officials told WXXI.
At the Becker's 5th Annual Fall Payer Issues Roundtable, taking place November 2–3 in Chicago, payer executives and healthcare leaders will come together to discuss value-based care, regulatory changes, cost management strategies and innovations shaping the future of payer-provider collaboration. Apply for complimentary registration now.
