Blue Cross And Blue Shield Of Minnesota Reports 2012 Results
EAGAN, Minn., April 1, 2013 /PRNewswire-USNewswire/ -- Blue Cross and Blue Shield of Minnesota and its family of companies (Blue Cross) today announced audited financial results for 2012. The organization reported a net operating loss of $54.8 million on full-year revenues of $9.5 billion, for a negative operating margin of (0.6%). Investment portfolio performance and additional sources of income offset operational losses, resulting in Blue Cross closing out the year with a net income of $68.4 million.
Blue Cross reported more than $8.6 billion paid in medical claims for the year, representing more than 91 cents of every premium dollar going directly to cover health care costs. Structured as a taxable non-profit entity, Blue Cross paid more than $120.5 million in taxes, assessments and surcharges in 2012. Enrollment was essentially unchanged from the previous year at more than 2.6 million members.
Audited results for Blue Cross include financial details for Blue Plus, the company's health maintenance organization (HMO) and a subsidiary of Blue Cross and Blue Shield of Minnesota. For the year, Blue Plus paid $906 million in claims on revenues of $957 million, resulting in an operating loss of approximately $45.1 million and a negative operating margin of (4.7%). Minnesota Public Health Care Programs (Prepaid Medical Assistance Program, Minnesota Seniors Health Options and MinnesotaCare) represented approximately 96.0% of Blue Plus' business in 2012. Blue Plus' net income, which includes operating performance combined with results related to Blue Plus' specific investment portfolio of securities, was a loss of $4.4 million for the year.
"Overall, Blue Cross remained financially stable in 2012, due in large part to positive results realized though our investment portfolio," said Michael Guyette, president and CEO of Blue Cross and Blue Shield of Minnesota. "However, we know a strong operational performance over the long-term needs to be the main driver behind our non-profit mission of making a healthy difference in people's lives. We continue the work of implementing key strategies that can help to reduce cost of care and create greater administrative efficiencies while still providing excellent, reliable coverage and service to our members.""In 2012, we saw the trend of historically low claims expense come to a close, which contributed to the operating loss that we experienced during the year," said Jamison Rice, chief financial officer of Blue Cross and Blue Shield of Minnesota. "During the recent recession, our members did not seek levels of care consistent with historical patterns, and utilization was lower than expected. As the overall economy strengthened, the volume and cost of our medical claims rose, contributing to the operating loss experienced last year." Blue Cross provides all information, reports and audited details as required by the State for both commercial and public program products. Detailed financial statements for the organization's regulated businesses are filed with the Minnesota Department of Commerce. A consolidated earnings statement for 2012 results is available at bluecrossmn.com. Blue Cross and Blue Shield of Minnesota, with headquarters in the St. Paul suburb of Eagan, was chartered in 1933 as Minnesota's first health plan and continues to carry out its charter mission today as a health company: to promote a wider, more economical and timely availability of health services for the people of Minnesota. Blue Cross is a not-for-profit, taxable organization. Blue Cross and Blue Shield of Minnesota is an independent licensee of the Blue Cross and Blue Shield Association, headquartered in Chicago. Go to bluecrossmn.com to learn more about Blue Cross and Blue Shield of Minnesota. SOURCE Blue Cross and Blue Shield of Minnesota
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts