BlueCross BlueShield of Vermont President and CEO Don George has announced his plans to retire at the end of 2025 after 16 years in the role. This decision comes as healthcare costs in the state are on the rise, with BlueCross BlueShield members’ claims increasing by 17% annually since 2020.
George wrote a letter in January stating that the company had been spending more on healthcare than it was bringing in, leading to a depletion of reserves. In October 2024 alone, BlueCross BlueShield lost $13 million, with reserves declining to a concerning level.
The insurer has experienced losses of $100 million per year for five of the past six years. In July 2024, the declining reserves put the company at risk of insolvency, necessitating another premium increase. Despite these challenges, George plans to stay on as CEO through the end of 2025.
BlueCross BlueShield insures one-third of Vermonters, with employees in the state paying the highest employer-based health insurance premiums in the country in 2023. The board of directors has already begun recruiting for George’s replacement to ensure a smooth transition.
George’s retirement announcement comes at a critical time for the company and the state’s healthcare system. The organization is hopeful that a new leader will be in place before the end of the year to navigate the challenges ahead.
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