Some Blue Cross Blue Shield plans are reporting year-end financial losses due to ongoing trends such as rising utilization in the Medicare Advantage space and growing demand for weight loss drugs.
BCBS companies collectively reported $7.5 billion in net income in the first half of 2023. A full ranking is here.
BCBS companies reporting losses in 2023:
BCBS Michigan reported a $544 million underwriting loss driven by a $3.2 billion increase in medical costs in 2023. The loss was offset by income in investments and profits from the insurer's subsidiaries, bringing 2023 net income to $100 million, up from a $777 million loss in 2022. The company cited surging healthcare utilization and skyrocketing demand for high-cost pharmaceuticals.
Excellus BlueCross BlueShield reported a net loss of $23 million on $6.6 billion in premiums collected in 2023, the company's first loss since 2008. The payer cited significant increases in high-cost inpatient hospital utilization, outpatient surgeries on hips and knees, and new prescription medications.
Highmark Blue Cross Blue Shield of Western New York reported a net loss of $21 million on revenue of $3 billion in 2023, Buffalo Business First reported. The company saw a $61 million net loss in 2022 on revenue of $3.1 billion. The payer cited increased premiums for small group plans, along with rising Medicare Advantage and weight loss drug costs.