Independence recorded a 1.1 percent dip in the amount of insurance premiums it collected last year as more corporations shifted to self-insurance. However, that was offset by a significant decrease in what the health insurer spent on members’ hospital, physician and pharmaceutical bills.
The lower claims costs were a large reason Independence saw its net income more than quadruple to $324 million in 2018, compared to $77 million the year prior, according to The Philadelphia Inquirer.
Independence said it spent 81.5 cents of every premium dollar on medical bills last year, compared to 86.4 cents per dollar the year prior. The company’s leaders said the change reflected favorable value-based contracts with hospitals and health systems in addition to better consumer education.
As a result of the improved performance, Independence plans to lower premiums this year, according to the report.
Editor’s note: This article was updated April 26 at 7:50 a.m.
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