Update on Blue Cross Blue Shield Plans 2022 Financial Results

AMI provides updates on financial results from some of the larger BCBS plans we profile in our annual Blue Cross Blue Shield Report.

Highmark Health announced consolidated financial results for the first six months of 2022, reporting $12.9 billion in revenue, an operating gain of $387 million, and a net loss of $174 million, which includes $460 million decline in unrealized equity market performance.

These results are due to the positive performance of the insurance business units, notably Highmark Health Plans, United Concordia Dental and HM Insurance Group, driven by favorable claims and membership. Highmark Health’s provider network,

The Highmark Health Plans reported an operating gain of more than $450 million for the first six months of 2022, primarily driven by robust performance in the commercial and government business and favorable claims development. Highmark Health maintained a strong balance sheet with $11 billion in cash and investments and net assets of $9.7 billion as of June 30, 2022.

Blue Cross and Blue Shield of North Carolina (Blue Cross NC) announced that its industry-leading Blue Premier program saved members $130 million in health costs in 2021, reaching a milestone of nearly half a billion dollars in cost savings, according to an analysis from Blue Cross NC.

Blue Premier modernizes health care by rewarding quality of care, resulting in fewer unplanned hospital admissions and more preventative care, saving lives and making health care more affordable. Hospital and doctor payments are based on successful treatments rather than only the number of procedures or tests performed. This program is helping to create a system where high-quality care is affordable for all.

Elevance Health supports health at every life stage, offering health plans and clinical, behavioral, pharmacy, and complex-care solutions that promote whole health. Companies include:

• Anthem Blue Cross and Blue Shield and affiliated blue plans are offered in 14 states.
• Wellpoint is comprised of affiliated health plans and specialty companies.
• Carelon focuses on solving the most complex challenges in healthcare. Our solutions connect people with technology, data, and expertise — making it possible to support whole health and streamline the health system.

Elevance Health reported second quarter 2022 results reflecting strong financial performance, including double-digit growth in revenue, operating earnings, and adjusted earnings per share.

Operating revenue was $38.5 billion in the second quarter of 2022, an increase of $5.2 billion, or 15.6 percent, from the prior year quarter. The increase was driven by higher premium revenue due to membership growth in Medicaid, the acquisitions of MMM and Paramount Advantage, as well as premium rate increases to cover overall cost trends and growth in Medicare Advantage and Commercial risk-based membership.

The increase in operating revenue was further attributable to the growth in pharmacy product revenue within IngenioRx, the acquisition of Integra Managed Care and the launch of Healthy Blue in North Carolina.

Takeaway: Blue Cross Blue Shield Plans are beginning to experience an increase of demand for care as they move further away from the effects of the pandemic