Actions taken in 2025 position the company for improved performance in 2026
Independence Health Group, Inc. (Independence), the parent company of Independence Blue Cross, LLC (IBX), reported year-end revenue of $36.3 billion for 2025, an increase of 13 percent year over year. The company reported a net loss of $423 million due to increased affordability pressure that weighed on overall performance. This pressure was largely reflective of broader trends across the health care industry including: higher utilization, more complex care, and rapid growth in pharmacy spending.
“We operated with focus and discipline in a challenging environment, moving decisively to manage cost trends, strengthen operations and invest in our core capabilities. We didn’t wait for the market to improve before taking action, and we’re entering 2026 with improving momentum and a stronger foundation to continue delivering value for the members and customers we serve,” said Kelly Munson, president and CEO of Independence Health Group.
The company saw continued strength in its core business, including strong retention in its commercial portfolio, growth from new and returning employer groups, and improved Medicaid rates.
Across the industry, health care costs accelerated beyond expectations in 2025. These trends reflect structural cost pressures across the health care system and were the primary driver of margin pressure during the year.
Independence addressed these trends while maintaining quality and access for its members and customers. The company advanced site-of-care strategies, expanded biosimilar adoption, strengthened pharmacy management, and maintained administrative cost discipline. It also continued a disciplined approach in provider negotiations, with a focus on advancing value-based partnerships that improve access, outcomes, and affordability. At the same time, Independence continued to deliver strong quality outcomes, with its Medicare plans earning 4 out of 5 stars from CMS and its Medicaid plans ranking among the highest in the country.
“Our priority in 2025 was to stay disciplined as cost trends shifted across the industry,” said Juan Lopez, executive vice president, chief financial officer, and treasurer. “We made targeted adjustments as the year progressed and saw performance improve. We’ve seen that momentum build through the first quarter of 2026, and expect that to continue, supported by the strength and diversification of our business and a continued focus on affordability and access.”
Media contact:
Kathleen Conlon
267-918-8057
kathleen.conlon@ibx.com
