Today, Independence Health Group (Independence), the parent organization to Independence Blue Cross, LLC and other subsidiaries and affiliate companies, announced the results of a supplement to its annual report that focused on the organization’s economic and social impact. The impact report was conducted by Philadelphia-based MFR Consultants, Inc. (MFR) and Econsult Solutions, Inc. (ESI).
In their review, MFR and ESI highlight the longstanding ripple effect Independence has on improving both the economic health and the overall well-being of the communities it serves. The findings demonstrate the magnitude of Independence’s contributions both regionally and nationally, including:
- Fueling the economy through its spending on goods, services, and employment.
- Dedicating long-term support for initiatives and partnerships that lift underserved communities, address health inequities, and increase access to quality health care.
“This assessment says a great deal about who we are and reaffirms Independence’s status as a major driver of economic activity in the greater Philadelphia region and beyond. We are proud to be able to support the communities we serve and remain dedicated to expanding that impact while helping to drive our economy forward,” said Gregory E. Deavens, president and CEO of Independence Health Group.
National and regional impact
According to MFR and ESI, during 2021, Independence, through its subsidiaries and affiliated companies, generated $6 billion* in economic output nationally through its direct operational spending outside of claims, including spending on goods, services, and employee compensation.
MFR and ESI also reported on the economic impact at the state, regional, and local level. The research showed that:
- Of the $6 billion generated nationally, $3.3 billion* was from Pennsylvania
- Of the $3.3 billion generated in Pennsylvania, $3 billion* was from Southeastern Pennsylvania (Philadelphia, Bucks, Chester, Delaware, and Montgomery counties)
- Of the $3 billion generated in Southeastern Pennsylvania, $2.1 billion* was from the City of Philadelphia
In addition to its performance in the Commonwealth of Pennsylvania, Independence generated $484.1 million* in economic output in New Jersey in 2021, supporting the employment of 1,700* full-time employees.
Furthermore, Independence, through its insurance subsidiaries, paid $22.7 billion in fully insured claims and $10.3 billion in claims paid on behalf of self-funded employers in 2022 to health care entities providing medical services for patients who are members of Independence plans.
Commitment to equity and community
The findings also demonstrate Independence’s support of diverse-owned or operated businesses in our community. From 2018 to 2023, Independence Health Group spent nearly $1.3 billion working with diverse suppliers.
As well, in 2022 Independence’s hiring of diverse suppliers resulted in $702.1 million* in economic output while it created 1,920 jobs* paying $137.8 million* in salaries and benefits, and generated $51.4 million* in federal, state, and local tax revenue.
“This report reflects our commitment to the community here in Philadelphia and other communities we serve throughout the country, where our members and associates live and work,” CEO Deavens continued. “As a company that has been rooted in this city for more than 85 years, we value our role as a steward of the social and economic well-being of our neighbors. We have built and maintained relationships based on trust and a proven record of dedication as a partner to many local organizations and initiatives.”
From 2018-2023, Independence contributed more than $112 million to support nonprofit organizations in the communities it serves. Most of these financial commitments focused primarily on healthcare, social and health equity, and wellness. In 2023 alone, the organization’s employees went beyond monetary contributions, as more than 10,000 employees reported over 113,000 hours of volunteer service, representing a value of more than $3.7 million. Forty-four percent of those hours were in Pennsylvania.
Foundation impact
Independence’s impact is bolstered by the initiatives and programs of the two independent charitable organizations created by subsidiaries of Independence Health Group.
In 2023, the two organizations awarded more than $11 million in grants to nonprofits and research efforts that address care, the health care work force, and health equity. Since their inception, the organizations have reached nearly 400,000 individuals and families, provided thousands of scholarships and internships, and hosted hundreds of community events.
As of December 31, 2023, Independence – which is headquartered in Philadelphia – has operations throughout the United States and serves more than 8.4 million people across the country. In 2023, the organization employed more than 14,000 people, with approximately 7,300 working in Southeastern Pennsylvania.
* Includes direct activity; indirect impacts, like spending on goods and services purchased within a given region; and induced impacts, such as spending resulting from labor income generated by the initial activity that ripples throughout the region.
Media contact:
Kathleen Conlon
Kathleen.Conlon@ibx.com
267-918-8057 (cell)