- Net income margin of 3.2 percent in line with last year
- Medical spending at 85 cents on the dollar
- Company committed to new initiatives to bring quality care to customers statewide
CHAPEL HILL, N.C. – In 2011 Blue Cross and Blue Shield of North Carolina (BCBSNC) continued to see stability in its financial performance as the company focused on a number of new pilots and initiatives in operations.
“Overall, 2011 was a year of innovation and stable finances,” said President and CEO Brad Wilson. “BCBSNC invested in pilot programs and collaborations focused on improving the quality of health care for our customers, bringing electronic medical records to providers and other initiatives that will create cost savings in key areas of business such as claims processing, billing and bringing new products to the marketplace.”
BCBSNC had a net income ratio (profit margin) of 3.2 percent for 2011, equating to just 3.2 cents for each dollar of revenue. That was consistent with 2010 and slightly below the company’s long range target of 3.5 to 4.5 percent. The company’s consolidated net income was $177.1 million, up from $167.7 million with total revenue at $5.5 billion.
During 2011, BCBSNC spent 85 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 made investments in new collaborations such as Carolina Advanced Health, a new primary care practice and innovation with UNC Healthcare. BCBSNC also invested in technologies for the company’s future including Topaz Shared Services and the collaboration with Allscripts that will bring electronic medical records to providers and free clinics statewide.
BCBSNC spent nearly $4.2 billion in claims and medical expenses during the year for its insured customers. The company paid a total of over $11.8 billion for both insured and self-insured customer claims.
The company’s overall membership exceeded 3.6 million in 2011. This includes nearly 946,000 served on behalf of other Blue plans.
As a fully-taxed company, BCBSNC incurred nearly $160.2 million in local, state and federal taxes in 2011. BCBSNC’s workforce was over 4,000 at the end of 2011.
Blue Cross and Blue Shield of North Carolina is a leader in delivering innovative health care products, services and information to more than 3.6 million members, including nearly 946,000 served on behalf of other Blue Plans. For over 78 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 www.bcbsnc.com.