Blue Cross & Blue Shield of Rhode Island (BCBSRI) is reporting an operating loss of $30 million through the first three quarters of 2024.

The insurer attributed the loss to a continuing surge in the volume and cost of medical services, up $92 million from the same period last year. Increases included a $63 million jump in expenses for medical care (inpatient, outpatient and doctor’s office visits) and a $29 million rise in prescription drug expenses, including the emerging class of GLP-1 drugs prescribed for weight loss and diabetes.

The escalation in health insurance claims began last year and has impacted insurers nationwide. BCBSRI reported an operating loss of $26 million in 2023.

Despite its ongoing efforts to manage medical and pharmacy costs on behalf of its customers and members, BCBSRI anticipates higher than expected healthcare cost trends to continue into 2025. Full-year earnings for 2024 will be reported in March.