CONTACT: Susan Leahy
BOSTON August 15, 2008 Blue Cross and Blue Shield of Massachusetts, Inc. (BCBSMA) and Blue Cross and Blue Shield of Massachusetts HMO Blue, Inc. (BCBSMA HMO Blue) filed statutory second quarter 2008 financial results today, reporting a combined after-tax net gain of $30.8 million. This total is comprised of an after-tax net income of $16.6 million for BCBSMA and net income of $14.2 million for BCBSMA HMO Blue (see attached fact sheet for details).
For the second quarter of 2008, BCBSMA earned premiums of $555.6 million and incurred $491.7 million in health care claims. BCBSMA experienced a $2.4 million operating gain, earned $14.4 million in investment income and incurred $77,000 in federal taxes for the reporting period.
For the second quarter of 2008, BCBSMA HMO Blue earned premiums of $1.1 billion and incurred $1 billion in health care claims. For the reporting period, BCBSMA HMO Blue experienced a $5.6 million operating loss and earned $19.8 million in investment income.
"This year, we are finding that our customers are more interested than ever in our efforts to help them manage the escalating cost of health care," said Allen Maltz, BCBSMA Chief Financial Officer. "Blue Cross continues to utilize investment income earnings as a way to slow premium rate increases for our customers."
Maltz described BCBSMA's efforts to make high quality health care more affordable, including changes to medical management, the Alternative Quality Contract option and new benefit designs. He added that all of these programs help keep premiums competitive.
The impact of economic factors such as the corporate mergers and downsizing have affected health insurers across the country and resulted in a decrease in enrollment for BCBSMA and BCBSMA HMO Blue of approximately 45,000 members, year to date.
Blue Cross Blue Shield of Massachusetts ( http://www.bluecrossma.com ) was founded more than 70 years ago by a group of community-minded business leaders. Today, headquartered in Boston, BCBSMA provides coverage to more than 3 million members, 2.5 million in Massachusetts. BCBSMA believes in rewarding doctors and hospitals for delivering safe and effective care, and in empowering patients to take more responsibility, become educated health care consumers and become stronger partners with their doctors. Blue Cross Blue Shield of Massachusetts is an independent licensee of the Blue Cross Blue Shield Association.