Blue Cross & Blue Shield of RI Posts $115M Loss, Announces Layoffs

Blue Cross & Blue Shield of RI Posts $115M Loss, Announces Layoffs

Blue Cross & Blue Shield of Rhode Island (BCBSRI) has reported a net loss of $115 million for 2024 after experiencing a nearly 20% increase in health care costs over the past 18 months, the company announced Wednesday night.

The company also announced a 3% reduction in the workforce, which constitutes 30 employees.

Driven by a surge in both healthcare prices and utilization, pharmacy costs for BCBSRI members jumped 14% in 2024, while outpatient care grew more than 10% over the prior year, said BCBSRI.

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“Alongside innovations to improve the management of complex conditions and pharmacy costs, BCBSRI has implemented cost-cutting measures to reduce its administrative expenses, including the consolidation of vendor contracts...” said the company.

The combined actions will reduce BCBSRI’s administrative expenses by approximately $20 million dollars annually, said the company.

In September of 2024, the McKee administration approved a major rate increase for Blue Cross and other health insurers.

“In 2025, BCBSRI will continue to strengthen its financial footing, ensuring the non-profit founded in Rhode Island more than 85 years ago and the state’s most trusted health insurer will remain positioned to continue leading access to high-quality, affordable, and equitable health care for Rhode Islanders,” claimed BCBSRI.

This story was first published on 3/5/25 at 7:56 PM.