BCBSNC 2010 Financial Results Show Stable Finances, Customer Base

  • Net income margin impacted by one-time gains and improved stock market performance but below long range target of 3.5 to 4.5 percent
  • Medical spending roughly comparable to last year at over 86 cents on the dollar 
  • Company remains committed to cutting administrative costs, meeting health care needs of customers, implementing reform
 
CHAPEL HILL, N.C. – In 2010 Blue Cross and Blue Shield of North Carolina (BCBSNC) continued to see stability in its financial performance and customer base despite a difficult economy.
 
“Overall, the company’s performance was strong last year. While many insurers lost customers, Blue Cross and Blue Shield of North Carolina is holding its own. We’re taking steps to trim administrative costs and we remain focused on meeting the health care needs of our customers every day as we begin to implement health reform,” said President and CEO Brad Wilson.
 
BCBSNC had a net income ratio (profit margin) of 3.2 percent for 2010, equating to just 3.2 cents for each dollar of revenue. That was up from 2.1 percent in 2009 and below the company’s long range target of 3.5 to 4.5 percent. The company’s profitability was affected by a variety of factors including one-time gains and improved stock market performance as well as continued high medical care ratio and slower membership growth due to the state’s down economy.  The company’s consolidated net income was $167.7 million, up from $107.3 million with total revenue at $5.2 billion.
 
During 2010, BCBSNC spent over 86 cents per premium dollar on the medical care of its customers.  Most of the remainder of the premium dollar went toward customer service and information technology.
 
The company spent nearly $4.0 billion in claims and medical expenses during the year for its insured customers, which is comparable to 2009. The company paid a total of over $11.5 billion for both insured and self-insured customer claims.
 
The company’s overall membership exceeded 3.7 million in 2010. This includes nearly 900,000 served on behalf of other Blue plans.
 
As a fully taxed company, BCBSNC incurred nearly $160 million in local, state and federal taxes in 2010.  BCBSNC’s workforce was over 4,000 at the end of 2010.
 
 
About Blue Cross and Blue Shield of North Carolina:
Blue Cross and Blue Shield of North Carolina is a leader in delivering innovative health care products, services and information to more than 3.7 million members, including nearly 900,000 served on behalf of other Blue Plans. For over 75 years, the company has served its customers by offering health insurance at a competitive price and has served the people of North Carolina through support of community organizations, programs and events that promote good health. Blue Cross and Blue Shield of North Carolina is an independent licensee of the Blue Cross and Blue Shield Association. Access BCBSNC online at bcbsnc.com.
 
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