Elevated medical and pharmacy costs continue to create affordability challenges for customers   

PROVIDENCE, R.I. — Blue Cross & Blue Shield of Rhode Island (BCBSRI), the state’s largest health insurer, today announced financial results for the year ending December 31, 2025. The company experienced a normalized operating loss of $78 million (on revenue of $2.43 billion, a -3.2% margin), a notable improvement from its 2024 loss of $115 million (on revenue of $2.21 billion, a -5.2% margin). 

When one-time adjustments and items related to other years are incorporated, BCBSRI ended 2025 with a $10 million operating loss. Including investment income, the company finished the year with a $14 million net gain—a meaningful step forward in the company’s path to long-term financial stability. 

The improvement comes despite historically high increases in healthcare costs. Since 2023, the company has experienced medical and pharmacy trends three times greater than prior to 2020. In 2025, 90.4% of BCBSRI’s premium revenue was spent on medical, prescription drug, and dental care for members, reflecting industrywide cost pressures that have forced significant increases in healthcare premiums. 

“Narrowing our operating losses by $37 million is the result of actions we have taken to operate with greater discipline and reduce costs,” said Martha L. Wofford, BCBSRI President and CEO. “Medical and pharmacy cost trends remain extremely elevated and are creating immense affordability challenges for our members and employers. At the same time, the fragility of our healthcare system is very real. There is significant work to be done to improve the sustainability, functioning, and financing of our healthcare system. At Blue Cross, we are committed to working with partners across Rhode Island to enable access to the affordable and quality healthcare that Rhode Islanders deserve.” 

BCBSRI is stable, with adequate reserves and capital to meet its financial obligations. After declining $102 million in 2024, reserves increased by $25 million to $362 million at year-end 2025, equal to approximately two months of average claim payments. 

The company’s leadership is committed to continued transparency about its financial position and the steps being taken to drive financial improvement and improve affordability. More information about BCBSRI’s 2025 financial results, community investments, and progress delivering enhanced patient experience and more personalized support can be found in the company’s 2025 Annual Report.