Arkansas Blue Cross & Blue Shield reported a $226.2 million net loss in 2024 and a 15% increase in claims exceeding $1 million.
President and CEO Curtis Barnett told Arkansas Business in May that members under 40 are generating seven-figure claims at the highest rate ever seen, and he detailed the company’s plan to return to financial stability.
Seven notes:
1. Since 2019, joint replacement surgery claims have risen 37% and behavioral health services are up 50%.
2. ABCBS saw 125 small groups drop coverage over high costs in 2024. The company is launching a new suite of small group products in 2026 to regrow that market.
3. ABCBS is also looking to grow its national account business, including outside the state.
4. More drug pricing reform at the federal level is needed to reduce overall costs, Mr. Burnett told the news outlet.
“Right now, you have the pharmaceutical manufacturers that can set the price for a drug, they can make semi-annual adjustments,” he said. “They can invest billions of dollars to drive, through direct-to-consumer advertising … demand for that drug, and it puts the rest of the system at a tremendous disadvantage when they do that.”
5. The company is focused on prioritization of preventive care and catching back up to pre-pandemic levels.
6. In 2024, ABCBS launched Celeste, an app that offers care navigation and management services for specific conditions, along with support for fitness, weight loss and women’s health.
7. The company is also focused on maintaining employee engagement scores, where it ranks in the top 10% of employers nationally.
