2023 Financial Results
Blue Cross & Blue Shield of Rhode Island realized an after-tax net gain of about $602,000 in 2023, representing a net margin of 0%. The lower than anticipated result reflects higher than expected increases in medical and pharmacy utilization and costs. Bolstered by reductions in administrative costs and favorable investment returns, we continued to reinvest in the community, as well as put money into reserves for the future protection of our members.
Overall Profit/Loss
This narrow positive financial result was affected by industry-wide increases in medical and pharmacy costs, one of the most pressing issues in Rhode Island and across the country. Learn more about initiatives we’ve taken to help control these costs for our customers.
Statutory Reserves
In 2023, statutory reserves that we held for the protection of our members totaled more than $439 million at year-end. This reflects an increase of $30.6 million from the previous year, due primarily to favorable investment income.
Total Revenue
In 2023, we recorded just over $2 billion in premiums from members (individuals and employers). We also recorded an almost $9 million gain on investment revenue.
Total Expenses
From total revenue, more than $1.8 billion was used for medical and dental claims for our members. This amount accounted for 89.3% of premium revenue collected. The organization spent more than $232 million (including premium taxes) on expenses to support the core operations of our business, or 11.4% of premiums.
Net Gain
Overall, total revenue stood at just over $2.0 billion, and expenses also were just over $2.0 billion in 2023, resulting in a net gain of just over $600,000.
NOTE: Numbers may not add up due to rounding.
This formulation represents unaudited results utilizing Statutory Accounting Principles. The Blue Cross and Blue Shield Association licenses Blue Cross & Blue Shield of Rhode Island to offer certain products and services under the Blue Cross and Blue Shield brand names. Blue Cross & Blue Shield of Rhode Island is an independent organization governed by its own Board of Directors and solely responsible for its own debts and other obligations. Neither the Association nor any other organization using the Blue Cross and Blue Shield brand names acts as a guarantor of Blue Cross & Blue Shield of Rhode Island’s obligations. A copy of Blue Cross & Blue Shield of Rhode Island’s most recent financial statements is available at the state Department of Business Regulation.