By Steve Brawner, © 2025 by Steve Brawner Communications, Inc.
Arkansas Blue Cross and Blue Shield had a rough 2024 financially. In a recent appearance on Talk Business & Politics, President and CEO Curtis Barnett offered some reasons why.
The company lost $226.2 million in 2024 after earning $13.2 million in 2023, according to its filing with the Arkansas Insurance Department. It announced it was laying off 75 employees, or 2% of its workforce, in January.
Barnett said other insurers are also struggling with high costs. He listed several factors. One is the Medicaid redetermination process in 2023. All recipients intentionally had been left in the program throughout the pandemic. Once the pandemic ended, the eligibility process resumed, and many recipients were removed from the program. That process disrupted the health insurance market in 2024, he said. Second, health providers want insurance companies to increase payment rates, which he said was understandable given their inflation challenges and workforce shortages. Third, he said patient utilization of services “skyrocketed” in 2024. Joint replacements were 37% higher than they were in 2019, which he attributed largely to pent-up demand coming out of the pandemic. Finally, he mentioned “high cost claimants” and pharmaceutical costs. Continue reading

