Blue Cross Minnesota Reports Sharp Drop in Operating Profit

The parent company of Blue Cross and Blue Shield of Minnesota, Aware Integrated, reported a significant drop in operating profit for 2024, which fell to $27.6 million—a decrease of approximately 73% from the previous year. This decline has been attributed to an unprecedented increase in healthcare utilization during the year, which outweighed gains in commercial coverage. Furthermore, losses incurred in Medicare and Medicaid plans exacerbated the situation.

CEO Dana Erickson pointed out that high healthcare service usage and the costs involved presented challenges, despite gains from operational efficiency and an increase in membership. The company also expressed concerns regarding potential cuts to Medicaid under proposed changes by the administration, which could lead to substantial funding constraints for state agencies.

The financial strain was echoed in the results of other Minnesota health insurers, including UCare, who reported considerable losses in their Medicare Advantage offerings as well. Overall, Aware Integrated reported total revenue of $16.5 billion for 2024, while its health insurance business alone brought in about $8.8 billion, marking a growth despite the operational losses.