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Independence Health Group reports sustained revenue growth for 2024 amidst significant industry headwinds

By April 2, 2025April 8th, 2025Company Updates Featured Press Releases
white Independence Blue Cross logo on blue background

  • Top-line revenue growth reflects new sales, strong commercial retention, and higher state directed pass-through revenue from its Medicaid managed care business

  • Business diversification and strong investment performance partially offset medical and pharmacy cost pressures that were seen across the industry

Independence Health Group, Inc., (Independence) the parent company of Independence Blue Cross, LLC (IBX), released its financial results for 2024, a preview of the organization’s upcoming annual report. Despite on-going industry headwinds that put pressure on insurers in the heath care space, the organization reported consolidated revenue of $32 billion, up $1 billion over 2023. When revenues are combined with claims paid on behalf of self-funded employers, Independence had health care funds under management of $44 billion in 2024.

Independence’s revenue growth is supported by a diversified business structure, strong sales and account management, and disciplined investment management. In 2024, the organization saw membership growth and retention in its Core Commercial Markets, a successful reentry in the New Jersey Medicare Advantage market, growth in its Pennsylvania Medicare Advantage PPO product, and revenue growth in its Medicaid managed care business.

Independence experienced a net loss of $239 million (-0.7 percent of total revenue) for 2024. These results reflect the company’s solid revenue growth, healthy commercial membership increases and account retention, and strong investment income offset by a sharp increase in medical and pharmacy costs.

Medical cost increases were most pronounced in government programs like Medicaid and Medicare, where year-over-year rate changes did not keep pace with underlying cost trends and changes in membership mix. Furthermore, the Medicaid redetermination process continued to impact the organization in 2024, which resulted in a higher level of medical acuity for remaining Medicaid members versus assumptions used in the 2024 state based premium rates.

“Independence Health Group continues to focus on opportunities to expand our coverage to more consumers, families, businesses and other organizations even as we navigate a complex and evolving healthcare environment. As an organization, we remain committed to improving and transforming healthcare by investing in advanced capabilities, offering innovative products and services that enhance member health and well-being, and supporting initiatives that strengthen the communities we serve. Our results for 2024 reflect these on-going commitments, our strong financial position, and the near-term cost pressures impacting the industry,” said Gregory E. Deavens, Independence Health Group president and CEO.

Increased medical and pharmaceutical costs are reflected in Independence’s Medical Cost Ratio (MCR) with 91.2 cents of each dollar in 2024 spent on health care claims. This is up from 87.8 cents in 2023. The organization also paid more than $870 million in federal, state, and local nonpayroll taxes, state premium taxes and assessments, and other Affordable Care Act-related taxes and fees.

“Independence has not been immune to the pressures across the health care industry. However, through steady stewardship, we maintain a strong consolidated capital position and are well-positioned for growth across all segments. Independence is committed to addressing the massive pressures impacting our members, employer clients, providers, and community partners,” said Juan Lopez, Independence Health Group executive vice president, chief financial officer, and treasurer.

2024 Programs, partnerships, and initiatives

In 2024, Independence continued to invest in capabilities and support key initiatives focused on improving the health and well-being of the people and communities that it serves. The company also celebrated several key milestones and noteworthy accomplishments.

Investments in care and technology

  • Connect to Care. Through Connect to Care, IBX members in every state can quickly access virtual behavioral health using scheduling tools and live intake that have helped more patients gain access to outpatient services, reduced health care costs, and led to declines of 45 percent and 42 percent in depression and anxiety, respectively, among participating IBX members.
  • Epic Payer*. IBX implemented the Epic Payer Platform with health systems and providers in its network to streamline data exchange, close gaps in care, and improve health outcomes for members. The platform helps facilitate workflow processes for providers, giving them the insights they need to make better care decisions while also saving time.
  • Independence Quality Cup. IBX awarded primary care groups at PentaHealth, Main Line Health, Redeemer Health, and St. Luke’s University Health Network its 2024 Quality Cup, which recognized these practices for outstanding management of patient care. The key measures of performance include the number of members getting mammograms, statin therapy adherence, maintaining healthy blood pressure, and managing diabetes.
  • AmeriHealth expanded network. Through a new collaboration with Evernorth Health Services’ Payer Solutions* business, AmeriHealth now offers an expanded provider network, increasing access to quality, affordable health care for certain members.
  • Pennsylvania Pharmacists Care Network (PPCN). Teaming up for chronic condition management and to address gaps in care, AmeriHealth Caritas Pennsylvania, Keystone First, and PPCN (an organization of nearly 400 community pharmacies in Pennsylvania) are helping Medicaid members diagnosed with hypertension and diabetes better manage these chronic conditions.

Supporting initiatives that improve the health and well-being of the community

  • Union HeadFirst. IBX deepened its support of this innovative youth mental health program through a partnership with the Philadelphia Union Foundation that allows thousands of youth soccer players in Delaware County and surrounding communities to receive mental fitness toolkits.
  • Boys and Girls Clubs. IBX collaborated with Boys and Girls Clubs on volunteer efforts that help young people in Philadelphia thrive, including a Field Day at the Germantown Club featuring activities and crafts focused on mindfulness and well-being.
  • American Heart Association. IBX’s sponsorship with the American Heart Association supports two key efforts: Hands-Only CPR education teaching individuals to immediately help someone who experiences a cardiac emergency outside of a hospital; and raising awareness and funds to fight heart disease and stroke through the annual Philadelphia Heart Walk.
  • The Franklin Institute. Through its support, IBX helped launch the Franklin Institute’s new Body Odyssey exhibit, which includes larger-than-life, interactive installations, such as the popular Giant Heart that IBX has sponsored since 2019, modern simulations, and other collaborative experiences.
  • Blue Crew and Blue Crew Gives. In 2024, more than half of all IBX associates participated in at least one community program, a reflection of the company’s culture of giving back to communities.
    • In 2024, nearly 1,400 Blue Crew volunteers participated in more than 180 projects, contributing nearly 6,800 hours to more than 75 nonprofits organizations throughout Southeastern Pennsylvania. Associate volunteers also recorded another 3,600 hours of independent volunteer time contributed outside the Blue Crew program including serving on boards of local nonprofit organizations.
    • Through Blue Crew Gives, IBX associates can donate to their favorite nonprofit organization and receive a matching corporate gift. In 2024, the combined giving of associates and the company was $1 million.
  • AmeriHealth Caritas Giving Together. 2024 marked the 10th anniversary of AmeriHealth Caritas’ Giving Together campaign, which saw the company and its associates raise more than $830,000 for community nonprofit organizations.

2024 Key milestones

  • Carallel*. IBX expanded its work with Carallel to provide support, guidance, and assistance to IBX members in case management and/or those with a diagnosis of dementia. The number of IBX Medicare Advantage members and their caregivers using Carallel grew by over 200 percent in 2024.
  • Regional Coalition to Eliminate Race-based Medicine. All 12 participating health systems in the Regional Coalition to Eliminate Race-based Medicine, a group convened by IBX, transitioned away from race adjustments in clinical decision support tools that help guide lung, kidney, and OB-GYN care. Eliminating race-based adjustments helped more than 700 patients move up on the kidney transplant list, including 63 who received a transplant in 2023.
  • Medicare Star ratings. IBX earned strong scores in the 2025 Medicare Star Ratings from the Centers for Medicare & Medicaid Services (CMS). Keystone 65 HMO plans achieved a remarkable 4.5 out of 5 stars, while Personal Choice 65SM PPO plans earned a strong 4-star rating. This achievement underscores IBX’s commitment to providing high-quality, member-centric Medicare Advantage plans.
  • AmeriHealth Caritas. Independence’s affiliate Medicaid managed care business was approved for a five-year contract in New Hampshire while seeing member increases in both Ohio and North Carolina.
  • AmeriHealth Medicare Advantage. During the first full year of expanded Medicare Advantage options in New Jersey, AmeriHealth Insurance Company of New Jersey achieved the second highest growth in its current seven-county service area and a six percent market share gain driven by strong enrollment and an attractive product portfolio.
  • Affiliate anniversaries. In 2024, two Independence affiliates celebrated significant achievements in longevity with AmeriHealth commemorating its 30th year in business and Tandigm Health celebrating its 10th anniversary.

Accomplishments

*Independent companies

 

Media contact:
Kathleen Conlon
267-918-8057 (cell)
Kathleen.Conlon@ibx.com