Wednesday, March 5th, 2025
Image: Bcbsri
Rhode Island's Blue Cross & Blue Shield (BCBSRI) reported a net loss of $115 million in 2024 after a nearly 20% increase in healthcare costs over the past 18 months, the company announced Wednesday night.
The company also announced a 3% cut in its workforce, which has 30 employees.
He said pharmacy costs for BCBSRI members rose 14% in 2024, and outpatient care increased by more than 10% from the previous year.
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“Along with innovations to improve management of complex conditions and pharmacy costs, BCBSRI is implementing cost-saving measures to reduce management costs, including consolidating vendor contracts…” the company said.
The company said it will reduce BCBSRI administrative costs by approximately $20 million a year.
In September 2024, McKee Administration approved a significant increase in Blue Cross and other health insurance companies.
“In 2025, BCBSRI continues to strengthen its financial foundations, ensuring the nonprofit that was founded in Rhode Island more than 85 years ago, and the state's most trusted health insurance company will continue to maintain its position to continue access to high quality, affordable, equitable health care in Rhode Island,” BCBSRI argued.
