Independence Health Group Announces New President and CEO

Kelly A. Manson is set to succeed Gregory E. Deavens as president and CEO of Independence Health Group, which is the parent company of Independence Blue Cross. This news was shared by the Center City Company on Monday.

Manson, who has been the CEO of Amerihealth Caritas—a Medicaid insurance provider primarily owned by IBX—will transition to her new role on October 1st. Interestingly, Amerihealth Caritas played a significant part in IBX’s financial landscape, representing three-quarters of its $32 billion revenue last year. Manson began her journey at Amerihealth Caritas in February 2024.

At 53, Manson will retain her oversight responsibilities for Amerihealth Caritas, which manages Medicaid operations across 13 states and Washington, D.C. However, the specifics of how this arrangement will work are still being finalized.

Independence reported that a national search was conducted for Deavens’ replacement. Deavens, 64, took over from Daniel J. Hilferty in early 2021 and will remain with the company until December to aid in the leadership transition.

“Kelley is a knowledgeable and seasoned healthcare leader committed to providing affordable, accessible, and high-quality healthcare to the communities we serve,” a spokesperson said.

A Challenging Insurance Environment

The timing of this leadership change happens to coincide with a tough period for health insurance companies. Rising costs—particularly related to drugs and services—have raised concerns. Last year, Independence reported its first annual loss since 2015, so financial scrutiny is definitely on the table.

In a separate move, Independence Blue Cross recently offered early retirements to its employees to streamline operations. At the time, this part of Independence Health Group employed about 4,100 individuals.

Amerihealth Caritas also reported its lowest revenue growth rate since 2018 last year, marking its first financial loss since 2019. This downturn in revenue is linked to the failure to secure a new state contract for managing Medicaid benefits, compounded by pandemic-related changes that led to a decrease in Medicaid enrolment.

Based in Newtown Square, Amerihealth Caritas has about 10,000 employees.

Diving deeper into her experience at Amerihealth Caritas, Manson pointed out that she had focused on addressing disparities in care for Medicaid enrollees, especially after the post-COVID drop in registrations. “I’m glad to see the gap starting to close,” she remarked, reflecting on her previous roles with Aetna and other Medicaid providers.

Manson also revamped the leadership at Amerihealth Caritas to ensure the organization is positioned for growth.

In her new role at Independence, Manson seems to be adopting a familiar approach. Hilferty previously went from CEO of Amerihealth Caritas to leading Independence, and he had spent 13 years managing a Medicaid subsidiary.

Deavens’ Tenure

Gregory Deavens initially joined Independence in 2017 as the Chief Financial Officer.

During his leadership, and especially throughout the pandemic, Deavens faced heightened competition from another Blue Cross Blue Shield company entering the Southeastern Pennsylvania market. Highmark, based in Pittsburgh, re-entered the region last year after being away for decades.

Previously, Independence had partnered with Highmark for back-office support, but with the new competition, Deavens and the Independent Committee decided to develop their own system, investing $144 million in the process.

As CEO, Deavens emphasized expanding access to behavioral health services, mentioning a 47% increase in mental health service providers within the local network since 2022.

One of Deavens’ most notable achievements was his key role in rallying support from nonprofit health systems to provide a $50 million safety net for St. Christopher’s Hospital for Children in 2022.