BCBS profit margins fall to 1.4%: 3 notes

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Combined profit margins across BCBS plans sank to 1.4% as of third-quarter 2025, according to a Jan. 29 analysis of Mark Farrah Associates’ Health Coverage Portal.

The report covered BCBS Association licensees and unaffiliated plans. The team compared composite third-quarter 2025 with the same period in previous years.

Here are three things to know about BCBS trends:

1. As of Sept. 30, BCBS plans account for 37.2% of U.S. health insurance enrollment, or 119.1 million members.

2. Profit margins have been trending downward in recent years. While third-quarter 2023 saw a jump to 3.5% from 3.1% in 2022, third-quarter 2024 saw a dip to 2.1%.

3. Out of the top five leading BCBS plans by members, Elevance Health had the highest profit margin at 3.9%. However, the only plan out of the five to see year-over-year profit margin improvement from 2024 to 2025 was BCBS Michigan, even though the value was still negative.

And here are how the five biggest plans performed:

Elevance Health

Q3 2025: 3.9%

Q3 2024: 4.6%

Highmark 

Q3 2025: -1.3%

Q3 2024: 1.7%

GuideWell

Q3 2025: 0.4%

Q3 2024: 1.6%

Health Care Service Corp.

Q3 2025: -1.1%

Q3 2024: 1.0%

BCBS Michigan

Q3 2025: -0.8%

Q3 2024: -3.5%

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