BCBSMA 2012 Annual Report

2012 in Review

Our 75th anniversary year was productive and successful, thanks to the dedication and hard work of our 3,500 associates.

Their commitment to making quality health care affordable, and their dedication to the health and welfare of our customers, our members, and the broader community at large, led to some notable achievements.

There is no doubt that the achievement that gives us the most satisfaction is helping our members at times when they are most vulnerable, and are most in need of security and peace of mind.

2012 Facts, Figures and Financial Overview

Our Compensation Philosophy
Attracting and retaining high-quality talent at all levels is crucial to our continued business success. Our compensation programs are designed to allow us to:
  • Remain competitive
  • Drive key business objectives
  • Reward associates for their performance
  • For more details on our compensation philosophy, click here.

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    2012 Facts, Figures and Financial Overview

    2012 Combined Balance Sheets
    and Income Statements


    Our Combined Balance Sheets and Income Statements provide a statutory-basis overview of the financial results of both Blue Cross Blue Shield of Massachusetts, Inc. and Blue Cross Blue Shield of Massachusetts HMO Blue, Inc.


    View our 2012 Combined Balance Sheets
    and Income Statements
    2012 Audited Financial Reports

    2012 Audited Financial Reports include Audited Statutory-Basis Financial Statements for Blue Cross and Blue Shield of Massachusetts, Inc. for the years ended December 31, 2012 and 2011 with Report of Independent Registered Public Accounting Firm. The reports also include the Audited Statutory-Basis Financial Statements for Blue Cross and Blue Shield of Massachusetts HMO Blue, Inc. for the years ended December 31, 2012 and 2011 with Report of Independent Registered Public Accounting Firm.


    View our 2012 Blue Cross and Blue Shield of Massachusetts HMO Blue, Inc.

    View our 2012 Blue Cross and Blue Shield of Massachusetts, Inc.
    2012 By The Numbers

    • We serve 2.8 million members, including more than 750,000 out of state
    • We are the health insurer for more than 30,000 Massachusetts businesses
    • We do business with 8 out of 11 Fortune 500 companies headquartered in Massachusetts
    • We employ 3,500 associates
    • We answered 4,175,111 phone calls in our service centers
    • We processed more than 44,800,000 claims
    • We spent $12.8 billion on medical care
    • We paid $133,000,000 in local state and federal taxes and assessments
    • We spent approximately 90% of every premium dollar on health care services

    2012 Facts, Figures and Financial Overview

    Business Highlights
    • Some of the state's most acclaimed hospitals and physicians groups signed on to our Alternative Quality Contract (ACQ), including Lahey Clinic, Boston Medical Center, and Children's Hospital. By the end of the year, three-fourths of our HMO membership was under the care of doctors and hospitals operating under the AQC payment model
    • We had the nation's top-ranked Medicare Advantage PPO, according to the highly regarded National Committee for Quality Assurance (NCQA) rating of health plans, which is based on clinical performance, member satisfaction, and NCQA Accreditation


    • Through a new partnership with Healthbox, a company that provides entrepreneurial support to health care start-ups, we invested in ten Massachusetts-based companies whose products and services have the potential to improve the quality and affordability of health care
    • We received approval from the Centers for Medicare and Medicaid Services to take part in a project to integrate Medicare and Medicaid benefits for people who are "dually eligible" for both programs, in conjunction with ValueOptions®' and its subsidiary, Massachusetts Behavioral Health Partnership


    • We helped Boston Mayor Thomas Menino launch a comprehensive, citywide wellness campaign called Boston Moves for Health. We challenged the Boston Red Sox, a cosponsor of the initiative, to a walking challenge, and our executive team outpaced the Sox leadership by averaging more daily steps per participant over a four week period. Our final tally was 401,328 steps
    • We were honored by the Boston Business Journal as a Corporate Leader in Diversity for our efforts to create a more inclusive workforce
    • We were selected as one of the Boston Globe's 2012 Top Places to Work


    ®'Registered Marks are the property of their respective owners.

    2012 Facts, Figures and Financial Overview

    Community Investment and Civic Engagement
    • We provided $6,295,518 in contributions, grants, and sponsorships to more than 560 nonprofit organizations that address the health and wellbeing of children and families facing economic hardship in the Commonwealth
    • In addition, the company contributed $5,000,000 to the Blue Cross Blue Shield of Massachusetts Foundation
    • 3,057 associates contributed more than 26,600 service hours as part of our BlueCrew volunteer program, which equates to a financial contribution of over $993,000
    • 90 percent of all associates participated in the BlueCrew program
    • BlueCrew volunteers worked on 139 different projects, including our company-wide Service Day
    • The Blue Scholars program, which pairs volunteer associates with students from area high schools, was designated a Quality-Based Mentoring program by Mass Mentoring
    Environmental Sustainability
    • Established our first company-wide
      set of environmental goals, focusing on reducing greenhouse gas emissions, waste, and paper use
    • Conducted our first greenhouse gas inventory to guide our energy strategy
    • Switched all office paper to post-consumer (recycled) paper that is also Minority Business Enterprise (MBE) and Forest Stewardship Council (FSCTM) certified
    • Incorporated sustainability criteria into all request for proposals sent to potential vendors and suppliers
    • Recycled more than 330 tons of waste, saving 5,600 trees, and avoiding the equivalent of 945 metric tons of carbon dioxide from entering the atmosphere
    • Won the top 2012 Healthcare & Biotech Recycling Award from MassRecycle
    The Blue Cross Blue Shield of Massachusetts Foundation
    • The Foundation made 82 grants totaling $3,512,006 to community organizations that advance the Foundation's mission to expand access to affordable coverage, especially for uninsured, low-income, and disadvantaged residents of Massachusetts
    • The Catalyst Fund, which is funded entirely by contributions from our company's associates, reached a milestone–one million dollars raised since its inception in 2002. The fund made 35 grants totaling $158,931 for projects that strengthen community organizations' capacity to expand access to health care

    Board of Directors and Executive Leadership Team

    Board of Directors:
    (as of December 31, 2012)

    George R. Alcott, III Vice President, Massachusetts AFL-CIO
    Brian M. Barefoot President Emeritus, Babson College
    Andrew C. Dreyfus President and CEO, Blue Cross and Blue Shield of Massachusetts, Inc.
    Helen G. Drinan President, Simmons College
    Richard C. Garrison President, Bink Inc.
    Paul Guzzi President and CEO, Greater Boston Chamber of Commerce
    Bruce H. Hamory, M.D., FACP Executive Vice President and Managing Partner, Geisinger Consulting Services for Geisinger Health System
    Philip W. Johnston President, Philip W. Johnston Associates
    Gloria C. Larson President, Bentley University




    Ralph C. Martin, II, Esquire Senior Vice President and General Counsel, Northeastern University
    Robert F. Meenan, M.D. Dean, Boston University School of Public Health
    Dorothy E. Puhy Executive Vice President and Chief Operating Officer, Dana-Farber Cancer Institute
    Timothy M. Sweeney Executive Vice President, Personal Insurance, Liberty Mutual Insurance
    Paul F. Toner President, Massachusetts Teachers Association
    William C. Van Faasen Chairman of the Board, Blue Cross and Blue Shield of Massachusetts, Inc.
    Benaree P. Wiley Principal, The Wiley Group
    Phyllis R. Yale Senior Advisor, Bain & Company, Inc.


    Board of Directors and Executive Leadership Team

    Executive Leadership Team:

    Andrew C. Dreyfus President and Chief Executive Officer
    Bruce M. Bullen Chief Operating Officer
    John Fallon, M.D Senior Vice President, Chief Physician Executive
    Sarah K. Iselin Senior Vice President, Strategy, Policy and Community Partnerships, and Chief Strategy Officer
    Stephanie S. Lovell Senior Vice President and General Counsel



    Allen P. Maltz Executive Vice President and Chief Financial Officer
    Jay McQuaide Senior Vice President, Corporate Communications
    Jason S. Robart Senior Vice President, Organizational Effectiveness, and Chief Human Resources Officer