AmeriHealth Caritas, a large Philly Medicaid insurer, had strong revenue and profit gains in 2023
The company headquartered in Newtown Square benefited from the addition of Ohio to the states where it runs Medicaid plans.
AmeriHealth Caritas, one of the nation’s largest Medicaid insurers, had strong revenue and profit gains in 2023.
The Delaware-County-based subsidiary of Independence Health Group, which also owns Independence Blue Cross, logged a 17% increase in revenue, to $23.7 billion last year from $20.2 billion in 2022. Net income climbed 31% to $368 million from $280 million over the same period.
The results appeared in the recently published annual audited financial statements of Blue Cross Blue Shield of Michigan, which owns 38.7% of AmeriHealth Caritas. Independence owns the remaining 61.3% of the Medicaid company. IBX consolidates AmeriHealth Caritas in its bare-bones financial report, but does not break them out.
IBX’s total revenue last year was $30.1 billion, up 13.6% from $27.4 billion the year before. The Philadelphia company’s net income was $377 million, more than double the 2022 profit of $156 million.
Revenue growth at AmeriHealth Caritas benefited last year from the addition of Medicaid managed care business in Ohio near the beginning of the year. AmeriHealth is one of several companies offering plans in the state and has such contracts in nine states.
AmeriHealth Caritas is also in the running for a contract in Georgia.
But the company recently lost a bid to remain in Florida, where it has been in business since 2012. AmeriHealth Caritas and seven other companies that were not selected for a six-year contract in Florida have filed protests. It also lost a bid for Medicaid business in Texas.
Another factor working against AmeriHealth Caritas’ revenue growth is a decline in Medicaid enrollment caused by the return last year of checks to determine if people with the government insurance for low-income individuals and families still qualify for the program. Those regular reevaluations had been suspended during the pandemic.
AmeriHealth Caritas had 887,715 members in the Pennsylvania Medicaid plans in March, down from more than a million a year earlier. Earlier this year, it appointed a new CEO, Kelly Munson.