Blue Cross Blue Shield of Michigan reported a $777 million loss for 2022, driven in part by the ongoing cost of the COVID-19 pandemic and pricing pressures in Medicare Advantage.
In a March 1 news release, the company reported its total revenue was $32.8 billion in 2022, resulting in a net loss of 2.3 percent for the year.
Other factors contributing to the loss were declining investment portfolio values and costs related to the sale of Advantasure, the company's health services arm.
BCBS Michigan CEO Daniel Loepp said the company endured "tremendous volatility" in 2022.
"Despite these challenges, Blue Cross stood behind our members and maintained a strong and stable credit rating," Mr. Loepp said.
As a nonprofit, the company tries to operate close to a break-even margin. Over the past 10 years, its margins have been within .5 percent, according to the news release.
Mr. Loepp, who has led the insurer since 2006, received $16.9 million in compensation in 2022, the Detroit Free-Press reported, with $13.8 million being bonus payments.
According to the newspaper, Mr. Loepp's compensation was $1.3 million higher than in 2021, but less than the $19.8 million he received in 2018.
Membership
According to the news release, the company saw slight declines in commercial and small group membership. Commercial membership declined 2 percent to 5.2 million, and small group membership declined by 11,000 lives.
The company added nearly 16,000 Medicare Advantage members in 2022, reaching 619,649 in total membership.
Medicaid membership increased by 25,000 to 349,274, and ACA membership increased by 2,800 to 157,500.
BCBS Michigan will publish its full financial report in May, according to the news release.