IU Health selling insurance business to Elevance
Indianapolis-based Indiana University Health is selling its health plan to Elevance Health’s Anthem Blue Cross and Blue Shield for an undisclosed amount.
The deal is expected to close by the end of 2024, according to a Sept. 10 news release. IU Health Plans serves 19,000 Medicare Advantage members across 36 counties and 12,000 fully insured commercial members through employers.
Other health systems have also sold their insurance subsidiaries this year. In February, Springfield, Mass.-based Baystate Health reached a deal to sell Health New England to Point32Health, parent company of Harvard Pilgrim and Tufts Health Plan. In January, Toledo, Ohio-based ProMedica announced it would sell its insurance unit, Paramount Health, to Medical Mutual of Ohio.
IU Health reported $1.1 billion in net income in 2023, which includes investment gains of $931 million. This contrasts with a net loss of $715 million in 2022, according to its most recent financial report. Operating revenue increased 6.9% year-over-year to $8.6 billion, driven by higher inpatient and outpatient surgeries and more medical inpatient discharges in 2023.
Elevance Health posted $2.3 billion in net income during the second quarter, a 24% increase compared to the same period last year. The company has 45.8 million members, including 32.3 million commercial and 2 million Medicare Advantage.
