We’re committed to health care that’s simpler, more transparent, and based on keeping people well. As we reimagine better care for all, we are accelerating healthy.
Innovating to improve health: It’s the powerful idea that drives our fearless efforts to reshape health care. Through outspoken leadership, forward-thinking investments, and proactive partnerships, we’re thinking differently, putting patients and their health first through a program we call Human-Centered InnovationSM. We’re committed to health care that’s simpler, more transparent, and based on helping people get well and stay well. As we reimagine better care for all, we are accelerating healthy.
Our vision has taken root and is growing strong. We’re harnessing information and technology to help real people solve real health problems — sometimes even before they occur. Our High-Touch HeartSM Program uses data analytics and machine-learning principles to predict which members with congestive heart failure are most at risk for being hospitalized. Then we collaborate with their physicians to monitor their condition at home, 24/7, through nurses on call and Bluetooth-enabled technology. At the first sign of trouble, the doctor’s orders may be initiated to keep our members safe and at home. We’re keeping costs down and our members healthy — that’s what our Human-Centered InnovationSM Program is all about.
It’s also about joining forces with best-in-class technology partners to make health care more accessible. To put the newest, most convenient health care tools directly into the hands of our members, we’re collaborating with like-minded innovators such as Relay Network, which fuels our personalized mobile communication tool, IBX Wire. And we’re also investing in cutting-edge startups such as Biomeme, which enables smartphones to perform gold-standard DNA analysis.
Our powerful partnerships are allowing us to bring state-of-the-art advances in care to our members. Through an exciting new collaboration with next-generation technology leader NantHealth, we are now the first health insurer in the nation to cover whole genome sequencing for our members with certain types of cancer.
We’re committed to radically improving the health care experience for doctors as well as patients. Consider Tandigm Health, the company we founded with DaVita Healthcare Partners two years ago. Tandigm has developed a network of nearly 400 Philadelphia-area primary care physicians and provided tools, resources, and training to enhance their ability to deliver the finest possible care to their nearly 95,000 patients. Tandigm also motivates physicians to perform well by rewarding quality of care, not quantity. Tandigm has already demonstrated solid progress toward accelerating the impact of primary care on improving health outcomes and lowering costs.
And Human-Centered InnovationSM is also about inspiring people with fun ways to stay fit. Our long history of energizing our community to take healthy action now includes Philadelphia’s new bike-share program, Indego — a name that combines “Independence Blue Cross” with “Get up and go!” Since Indego’s launch last April, people in our community have taken more than 430,000 rides on Indego’s eye-catching blue bikes.
Our innovative thinking and bold action have resulted in a year of strong, consistent membership growth. We’re particularly proud of the ways we innovated to retain key business such as Comcast NBCUniversal. With this valued customer and partner, we’re looking to further our efforts on Connected Health: Ways to empower care and health information when and where people need it using the power of media and technology. And we’re investing with Comcast in Accolade, a forward-thinking innovation company that combines leading technologies, integrated clinical decision support, and customer service to simplify navigating the health care system, creating a superior experience for our members.
Our groundbreaking vision of health care innovation, collaboration, and partnership was recently recognized in Philadelphia magazine, which named Independence one of “Philly’s Coolest Companies 2015.” One of only 20 businesses chosen, we were lauded for our investments in promising health care startups, our outreach to Philadelphians, and our tuition-reimbursement benefit — dynamic innovations that put people first. This honor reflects the growing commitment of our more than 10,000 associates to innovating, collaborating, and partnering to fundamentally transform health care — a commitment to “accelerating healthy.”
Chief Executive Officer
Independence Health Group and its subsidiaries touch the lives of nearly 10 million people in 27 states and the District of Columbia, including 2.5 million in the Philadelphia region. Diversifying across products, capabilities, and geography, we serve everyone, from individual customers to local family businesses to large national corporations — all trusting in the power of Blue and the innovative energy of Independence.
Against a backdrop of enormous change in the health care industry, Independence remains a financially strong company, poised for growth and well-positioned for the future. Independence finished 2015 with growth in topline revenue and membership, but also experienced the financial challenges of an ever-evolving health care marketplace.
In 2015, Independence reported a record $13.8 billion in revenue, up $622 million (or 4.7 percent) over 2014. We also saw an increase of nearly 400,000 members from the previous year, bringing membership to nearly 10 million people in 27 states and the District of Columbia.
At the same time, 2015 was a challenging year for health insurers, and Independence incurred a net loss of $54.4 million. Contributing to this loss was a significant increase in health plan utilization among individual and Medicare members, and an increase in the amount spent on specialty and high-cost brand-name prescription drugs. In addition, we paid a total of $695 million in federal, state, and local nonpayroll taxes. For taxes and fees related to the Affordable Care Act alone, we paid $263 million — nearly 30 percent above what we paid in 2014.
Despite these headwinds, our financial foundation continues to be strong. Our average five-year margin is 1.2 percent, and we have seen year-over-year growth for revenue and membership since 2012. In addition, we ended 2015 with $2.7 billion in surplus, ensuring that we have the resources to pay claims and keep customers secure.
We spent 83.3 cents of each premium dollar to pay for our customers’ health care in 2015. We used 12.1 cents to run our business and invest for the future. We used 5 cents to pay taxes — a total of $695 million in federal, state, and local nonpayroll taxes. For taxes and fees related to the ACA alone, we paid $263 million — nearly 30 percent above what we paid last year. We made no profit in 2015. The medical services used by individual members increased significantly, as did the amount we spent on specialty and high-cost, brand name prescription drugs, resulting in a -0.4 margin.
|Cash and investments||$4,179,640||4,015,761|
|Premiums and other receivables||1,629,573||2,066,998|
|Intangibles and other assets||1,174,833||905,273|
|Independence Blue Cross surplus||2,379,739||2,481,643|
|Noncontrolling interest surplus||329,755||219,095|
|Total liabilities and surplus||$6,984,046||$6,988,032|
|Operating income (loss)||$211,633||$275,040|
|Other income (expense)||(150,080)||(203,718)|
|Pretax net income (loss)||$119,868||$234,469|
|Income tax benefit (expense)||(148,341)||(155,341)|
|Net income (loss)||$(54,415)||$69,175|
Independence Health Group, Inc., through its subsidiaries delivers innovative health and wellness solutions in southeastern Pennsylvania and throughout the nation by offering a wide range of market-leading health plans and specialty services. Independence Health Group subsidiaries include:
*The executive team of Independence Health Group, Inc.
As of April 1, 2016
Independence Health Group, Inc. is the parent company of Independence Blue Cross, LLC, and its subsidiaries and affiliates