Syracuse, NY — The largest private insurance provider in Central New York reported a small profit last year, despite incurring a $163 million loss in daily operations.
Annual financial documents submitted to the state indicate that this operating loss represented around 2.5% of Excels Blue Cross Blue Shield’s yearly budget. The company paid out $6.5 billion in premiums, while claims totaled $6.7 billion.
This marks the second consecutive year that non-profit insurers have struggled to gather enough premium revenue to cover medical claims.
However, Excellus managed to offset these losses with better-than-expected returns on investments, reporting $186.5 million in revenue from this area, up from $130 million.
By the end of 2024, the non-profit health insurer recorded a surplus of $25.6 million. This is noteworthy as it’s the first surplus since 2008, when the company faced a loss of $23.2 million.
The Health Plan’s membership fell to 1.43 million in 2024, a decrease of about 4% from the previous year’s 1.48 million members.
As the largest commercial health insurer in Central New York, Excellus also provides Medicare options, Medicaid, personal and self-insured plans, as well as vision and dental coverage.
Higher health costs and increased reimbursement rates from Medicare were cited as reasons for last year’s operational losses by health insurance companies.
During the summer of 2023, the federal Medicare program raised payments to New York State Central Hospital for services rendered. Additionally, the privatized Medicare Advantage plans faced increased fees.
However, Excellus noted that the payments from Medicare for these Advantage claims didn’t increase, which contributed to significant losses in the Medicare Advantage segment.
In 2024, Excellus reported expenditures exceeding $100 million for hospital services under Medicare Advantage, yet overall losses from these Medicare plans surpassed $200 million.
The organization claimed that it spent 92% of its premium income on patient care, leaving around $500 million for other operational expenses. This remaining amount covered taxes, salaries, and infrastructure costs, according to a news release from Excellus.
The nonprofit revealed a reserve fund of $1.7 billion, adequate to cover 91 days of operating expenses, and paid $461.3 million in federal and state taxes and fees.
In the previous year, five senior executives earned over $1 million each.
CEO Jim Reid’s compensation rose by about 10%, climbing nearly $4 million. His salary increased from $2.2 million in 2022 to $3.6 million in 2023, marking a significant rise from the prior year.
The top 10 earners at Excellus collectively received $14.3 million in 2024.
Here’s the breakdown:
James Reed, President and CEO: $3,970,341
Barry Thornton, Executive Vice President and Chief Operating Officer: $2,013,826
Christopher Gorekki, EVP and Chief Financial Officer: $1,828,695
Melissa Gardner, EVP, Chief Population Health Officer: $1,581,313
Lisa White, EVP, Chief Admin Officer: $1,103,935
Brenda Rigas, SVP, General Counsel and Regulatory Compliance: $861,454
Todd Muscatello, SVP, Chief Marketing and Growth Director: $790,820
Cynthia Langston, SVP, Chief Information, Data, Digital Officer: $772,257
Christine Barnes, SVP, Operational Excellence: $730,520
Robert Wendler, SVP, Head of Health Planning Finance: $720,908
