Independence Blue Cross Has 25% Drop in Profits Due to Rise in Medical Costs

Independence Blue Cross' net income fell from $191.5 million in 2012 to $142.6 million in 2013, according to a Philadelphia Inquirer report.

Independence's net income fell, even though its revenue grew from $10.48 billion in 2012 to $11.05 billion in 2013. This was due to large investments made by the company into new technology, tools and processes to service many of its new customers — many who retained health coverage for the first time in 2013.

The company said the decrease in net income can be partially attributed to an increase in medical costs. Independence spent 84.7 percent of all premiums on medical claims in 2013, up from 83.9 percent in 2012, according to the report. 

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