Excellus BlueCross Blue Shield says that it received $6.6 billion in premium revenue last year and paid out $5.9 billion in medical benefits.
That’s according to the report for 2021 recently filed with the New York State Department of Financial Services.
A spokesperson for Excellus, Joy Auch, said that is the highest amount paid out in benefits in at least 20 years.
The health plan’s spending for medical benefits increased by $635 million or about 12% in 2021.
Jim Reed, who took over as CEO and President of Excellus last year, said that the company “experienced larger than expected growth in medical benefit spending in 2021, which was related to a pent-up demand for care delayed from 2020, and an increase in claims late in the year related to the omicron variant.”
Excellus also reported that its reserves, which are used to be drawn upon for unseen higher expenses, stood at $1.5 billion at the end of 2021.
Excellus also said that their rate increase request for 2022 in the individual market was 45% lower than the state average of all insurers, and the rate hike request for small groups was 31% lower than the state average.
Excellus BlueCross BlueShield had requested a 9.7% rate hike for 2022 in the small group market, but the state approved an 8.7% increase. For the individual market rates, Excellus requested a 6.2% increase, but the state approved a 4.5% increase.
Excellus reported this week that its administrative expense per member each month was 31% lower than the average of its four major upstate health plan competitors.
Excellus’ Board of Directors chairwoman, Marianne Gaige, said that the nonprofit had a solid performance in 2021 despite the continuing of the COVID-19 pandemic.
Gaige said they “successfully balanced the need for a small margin to remain financial strong with a desire to help our members, communities and others access quality, affordable care amid a pandemic.”
