Health Care Costs & ABCBS (Editorial)

The Arkansas Blue Cross & Blue Shield building in Little Rock (Michael Pirnique)

Rising health care costs threaten the viability of Arkansas’ biggest private company, Arkansas Blue Cross & Blue Shield, based in Little Rock and the employer of more than 3,000 workers.

As our Mark Friedman has reported, the not-for-profit health insurer lost $100 million in the first three quarters of last year, prompting the layoff of 75 workers. Now it appears to be in discussions with Cambia Health Solutions of Portland, Oregon, about a possible merger.

“The reduction in workforce was due to changing conditions in the market and increasing financial pressures primarily due to health care costs jumping to the highest levels in more than a decade,” an ABCBS spokeswoman said. 

ABCBS is not alone. U.S. health insurance companies saw a 14.1% drop in net income in the first half of 2024 compared with the same period in 2023, a decrease linked to a 7% increase in hospital and medical expenses.

The Republicans now hold the presidency and have a majority in both houses of Congress. It would be a good time for them to address soaring health care costs, an issue that not only affects the largest private company in Arkansas, but every American.