News Briefs: BCBS of Michigan Posts $1.7 Billion Operating Loss in 2024
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Mar 07, 2025
Blue Cross Blue Shield of Michigan had a $1.7 billion operating loss in 2024, according to a March 3 Crain’s Detroit Business article. The company paid out $20.7 billion in claims last year, with medical claims increasing $2.1 billion and pharmacy costs increasing $900 million compared with 2023. Crain’s noted it was the fourth consecutive year BCBS of Michigan paid out more in medical claims than it collected in premiums. A BCBS of Michigan spokesperson told AIS Health last month that the company “has weathered significant economic headwinds affecting virtually all health insurers.” The company has passed on double-digit premium increases to fully insured customers and is seeking to reduce administrative costs by $600 million over the next few years.
Wellvana has acquired CVS Health Corp.’s Medicare Shared Savings Program business, according to a March 4 press release. As part of the deal, CVS Health obtained a minority stake in Wellvana, a value-based care enablement company that serves about 1 million Medicare patients and supports providers in 40 states. CVS Health noted it would continue pursuing value-based care arrangements in its Oak Street Health and MinuteClinic locations, as well as through contracts between Aetna and providers.
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