Blue Cross and Blue Shield of Vermont Sees Notable Financial Improvement in 2025
Financial recovery expected to be a multi-year process as we continue focus on sustainable solutions to address rising health care costs.
Berlin, Vermont — Blue Cross and Blue Shield of Vermont (Blue Cross VT) today announced an operating gain of $53 million and an operating margin of +2.7% for the year ending December 31, 2025.
“We are pleased with the hard work and collaboration that helped us deliver a positive financial performance in 2025,” said Beth Roberts, President and CEO of Blue Cross VT. “This a meaningful achievement however it does not eliminate the need for continued adequate premiums and an ongoing focus on lowering the cost of care,” she cautioned.
In 2025, Blue Cross VT total revenue was $2.0 billion, and the company paid out $1.8 billion in member healthcare expenses. The 2025 financial performance was largely driven by:
- Improved alignment between premiums and medical expenses: while medical and drug expenses continue to rise higher than national trends for 2025, the organization anticipated this and therefore premiums better aligned with actual medical costs, a critical factor for financial sustainability.
- Reduced operating expenses: the Blue Cross VT team reduced its operating budget by approximately $7 million in 2025 compared to 2024, reflecting internal cost discipline, staffing controls, and administrative efficiencies, while maintaining the high-quality service its members know and expect.
- Negotiated resolutions: settlements with UVMMC and our Pharmacy Benefit Manager were positive one-time additions to the bottom line.
In addition, Blue Cross VT repaid the $30 million surplus note it borrowed from Blue Cross and Blue Shield of Michigan in late 2024 to boost reserves during the ongoing claims surge. Paying off the surplus note at the end of 2025 avoided $2.4 million in future annual interest payments. Blue Cross VT also increased its member reserves to $105 million, about two-thirds of the minimum reserve level mandated by the Vermont Department of Financial Regulation.
“While we continue on our financial recovery, we are not losing sight of the fact that Vermonters are struggling to afford health care,” said Roberts. “We need to continue to address rising medical costs while ensuring premiums are both adequate and affordable, and we will do that working alongside healthcare leaders, regulators and legislators. Beyond our collaboration with stakeholders across the health care system, Blue Cross VT remains laser-focused on operating efficiently and maintaining our position as a health plan that manages and limits administrative costs better than most national plans.”
About Blue Cross and Blue Shield of Vermont
Blue Cross and Blue Shield of Vermont is a local, not-for-profit health plan. For over 40 years, the company has been enhancing the health and well-being of the Vermonters we serve by offering innovative plans to individuals, older Vermonters, and businesses. Our employees are dedicated to developing new ways to support high-quality care, programs and events that promote wellness. Blue Cross and Blue Shield of Vermont is a licensee of the Blue Cross and Blue Shield Association.
