• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Blue Cross and Its Family of Companies Release 2005 Financial Results

Posted on: Friday, 31 March 2006, 15:00 CST

EAGAN, Minn., March 31 /PRNewswire/ -- Blue Cross and Blue Shield of Minnesota and its family of companies today released financial performance results for 2005.

The company saw revenues of $7.1 billion, with $6.4 billion in medical claims costs. Overall operating gain was point two (0.2) percent of revenues, or $11 million, which increased statutory reserves.

Administrative expense ratios for the health plans remained flat, at 9.9 percent of revenue, including taxes, assessments, broker fees, health improvement and cost containment expenses.

"We've done a good job in this area, especially in recent years," said Tim Peterson, Blue Cross CFO. "Blue Cross spends less than 10 percent of our premium dollars on administrative expenses. National health plan surveys indicate that we are in the top 25 percent of health plans in terms of efficiency."

Overall enrollment grew to 2.7 million members, with the addition of 65,000 members in 2005. Enrollment in Blue Cross consumer directed products grew by 52,000 members. Consumer directed products, such as Options Blue, combine a high deductible plan with greater consumer control over their health and health care.

In 2005, the company also invested nearly $123 million in member health improvement and cost containment measures showing up to a 3 to 1 return on investment.

Health care cost trends -- the change in Blue Cross claims costs from year to year -- moderated. At 9.1 percent by end-of-year 2005, the trend returned to the single digits for the first time in nearly a decade. The rate slowdown was primarily due to changes in the types of health care services, procedures and products, such as prescription drugs, that members selected and/or used in 2005.

The company's Blue Plus HMO reported continued fluctuation in financial results, with a 2005 net operating gain of $22.5 million, which increased the HMO's statutory reserves. Blue Plus administrative cost ratio was 9.9 percent. The figure includes broker fees, taxes, assessments and $14 million in investments in member health and cost containment measures.

The 2005 financial results were released in filings made today with state regulators on the company's health plans, including Blue Plus HMO and Blue Cross. They also include the 2005 results of the other companies within the Blue Cross family. The company's annual consolidated earnings statement reflects the results and will be published in June in the Blue Cross annual report, entitled "ClearBlue."

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: to promote a wider, more economical and timely availability of health services for the people of Minnesota. A not-for-profit, taxable organization, Blue Cross is the largest health plan based in Minnesota, covering 2.7 million members in Minnesota and nationally through its health plans or plans administered by its affiliated companies. Blue Cross and Blue Shield of Minnesota is an independent licensee of the Blue Cross and Blue Shield Association, headquartered in Chicago. Go to http://www.bluecrossmn.com/ to learn more about Blue Cross and Blue Shield of Minnesota.

Blue Cross and Blue Shield of Minnesota

CONTACT: Karl Oestreich, +1-651-662-1502, or Monika Strom,+1-651-662-6889, both of Blue Cross and Blue Shield of Minnesota

Web site: http://www.bluecrossmn.com/

Source: PRNewswire

More News in this Category