Priority Health’s commercial HMO lost money on policies for the second straight year, despite the Grand Rapids-based health plan ending 2025 in the black overall, as spiking prescription drug costs and rising utilization rates squeezed the insurer’s core business.
Given drug claims that increased more than 20% across the entire book of business and higher utilization rates for care, “as we look at 2025, I would say we are proud of the results that we have,” said Priority Health CFO Celeste McIntyre.
The results underscore mounting financial pressure across Michigan’s health insurance market, where rising drug costs and greater use of care have driven up premiums and threaten affordability for employers and consumers.
Priority Health overall earned nearly $35 million in operating income last year on about $8.1 billion in revenue across all products lines. The insurer said $165 million in investment earnings lifted its overall net income to $200.4 million…