BOSTON — August 14, 2026 — Blue Cross and Blue Shield of Massachusetts, Inc. and Blue Cross and Blue Shield of Massachusetts HMO Blue, Inc. (together, “Blue Cross”) today reported a combined after-tax second quarter net income of $83.4 million on revenue of $2.7 billion (3.0% net margin). These results reflect an operating and other income of $35.7 million (1.3% operating margin) and investment income of $47.7 million.
Year-to-date, Blue Cross reported a combined after-tax net income of $142.9 million on revenue of $5.4 billion (2.7% net margin). These results reflect an operating and other income of $53.0 million (0.9% operating margin) and investment income of $89.9 million. These results also reflect a premium deficiency reserve.
The big picture: While overall healthcare costs remain much higher than in the past, spending on medical services grew slightly slower than we expected this quarter—partly due to a milder flu season. However, this slower growth was offset by the rising cost of prescription drugs for our members. To keep our plans stable, we continue to make sure our premiums closely match the actual cost of care.
What they're saying: "Our top priority is keeping healthcare as affordable as possible for our members and the employers we serve, which is incredibly challenging right now," said Ruby Kam, Executive Vice President and Chief Financial Officer of Blue Cross. "After two consecutive years of record losses, we are also laser focused on restoring our company’s financial health. We are doing this by carefully managing our own administrative costs and making necessary adjustments to our pricing and benefits."
Why it matters: Because we are a not-for-profit health plan, we do not answer to shareholders. When we do well financially, we put that money back into making care more affordable, keeping our members’ out-of-pocket costs down, and building healthy communities. It also ensures we remain a stable, trusted partner our members and employer customers can rely on for years to come.
Blue Cross is the leading private health plan in Massachusetts with 3 million members.
About Blue Cross Blue Shield of Massachusetts
Blue Cross Blue Shield of Massachusetts (bluecrossma.org) is a community-focused, tax-paying, not-for-profit health plan headquartered in Boston. We are committed to showing up for everyone like they’re the only one and guiding our members to the exceptional health care they deserve – affordably, equitably and seamlessly. In keeping with our commitment, we are rated among the nation's best health plans for member satisfaction and quality. Connect with us on Facebook, Twitter, YouTube, and LinkedIn.