Investment income drove a $377 million net income for Independence Blue Cross in 2023.
The Philadelphia-based insurer reported a 1.2% operating margin in 2022, according to an April 2 press release. The margin was "due in part to strong investment income," the company said.
Independence Blue Cross reported revenues of $31.1 billion in 2023, up 13.6% from 2022. Revenue gains were offset by rising utilization of high-cost drugs, including GLP-1 drugs for diabetes and weight loss, the company said. Year-over-year increases in medical costs also offset gains.
The company's medical loss ratio in 2024 was 87.8%.
Other Blue Cross Blue Shield companies have reported rising costs from utilization of high-cost drugs, increasing outpatient procedures and rising utilization rates in the Medicare Advantage population.