Five notes:
1. BCBSMA reported an after-tax third quarter net income of $29.2 million on revenue of $2.4 billion (1.21% net margin).
2. Year-to-date, BCBSMA reported an after-tax net income of $27.1 million on revenue of $7.2 billion (0.38% net margin).
3. The company’s operating loss in the third quarter was $19.8 million. Compared to a year ago, Q3 operating income is down $145 million and net income is down $135.1 million.
4. 2,000 members are starting GLP-1 medications every month, and spending on GLP-1s has risen by 250% since last year, putting the company on track to spend nearly $200 million on the medications in 2024.
5. “We continue to see a significant escalation in spending on medical and pharmacy services; in fact, the growth in spending is the highest in at least a decade,” CFO Ruby Kam said. “While the increase in spending is across almost all categories of services, the growth in spending on new and popular GLP-1 weight loss medications is worth noting.”
