Excellus BlueCross BlueShield reported a net loss of $23 million in 2023, its first loss since 2008, NPR affiliate WXXI reported March 4.
Excellus President and CEO Jim Reed said the payer is seeing significant increases in "high-cost inpatient hospital utilization, outpatient surgeries on hips and knees, and new prescription medication," according to the report.
The payer took in $6.6 billion in premiums, which was unchanged from 2022, according to the report. The company spent $6.2 billion in medical costs, up $270 million from 2022.
Excellus said that 93 cents of every premium dollar went to medical care in 2023.. Of that, 69 cents went to hospitals and doctors; 14 cents paid for prescriptions; 6 cents went toward ER visits, labs, ambulances and related professional services; and 4 cents went to other medical costs.
Mr. Reed received more than $3.5 million in total compensation, mostly in bonus pay and other compensation, according to the report. Overall compensation for the company's 10 highest-paid executives increased by 41%. Executive compensation is determined by the company's board of directors "based on comparable market data and performance," company officials told WXXI.