Vermont鈥檚 largest insurance company, BlueCross BlueShield of Vermont, said they had another year of losses in 2024 as health care expenses rose more than 15% compared to the prior year.
It鈥檚 the fourth year in a row expenses from patient claims exceeded income from premiums for the insurer, which covers over 230,000 people, according to filings from the Department of Financial Regulation.
The insurer lost over $62 million in 2024, $24 million in 2023, $46 million in 2022, and $17 million in 2021, when not accounting for income from investments.
鈥淲e've had a string of losses,鈥� Ruth Greene, the company鈥檚 chief financial officer, said in a call this week.
Rising health care costs are a national trend, but they are especially bad in Vermont. Greene cited increasing demand for pricey services and medications, including new cancer treatments and GLP-1s 鈥� a class of diabetes and weight-loss drugs 鈥� along with 鈥渆xtraordinary prices at our hospitals,鈥� where most people they cover are seeking care.
To help stay afloat, the company borrowed $30 million from BlueCross BlueShield of Michigan at the end of the year, to be repaid with an 8% interest. They also cut $3 million in administrative expenses for things like travel, training, marketing and advertising.
鈥淵ou're not going to see much of us in the marketplace, and no banner ads,鈥� said Sara Teachout, the spokesperson for BlueCross BlueShield of Vermont.
To keep up with the rising health care costs, she said to expect more premium increases, similar to recent years.
鈥淲hen you're looking at 15.5% year over year increases, the premiums have to at least keep pace with that.鈥�
Have questions, comments or tips? Send us a message.
