GLP-1s continue to dampen BCBS Massachusetts’ finances

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Blue Cross and Blue Shield of Massachusetts has reported a combined after-tax first quarter net income of $37 million on revenue of $2.6 billion (1.4% net margin). 

The results reflect an operating and other loss of $9.8 million (-0.4% operating margin) and investment income of $46.8 million, according to the company’s quarterly earnings published May 15.

“The big story is that spending on medical and pharmacy services for our members remains elevated, at near historic highs,” CFO Ruby Kam said. “Two notable callouts in the first quarter involve higher spending due to the difficult flu season as well as the continued impact of high-cost GLP-1 medications.” 

Ms. Kam said the company projects operating and net losses for full-year 2025.

In 2024, the company posted its worst operating loss in its history, reporting a $400 million operating loss (-4.3% operating margin). GLP-1 drugs accounted for nearly 20% of the insurer’s pharmacy spending in 2024.

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