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Blue Cross Blue Shield of Massachusetts Files Third Quarter 2008 Financial Results

CONTACT: Tara Murray
(617) 246-4851
Tara.Murray@bcbsma.com

Blue Cross Blue Shield of Massachusetts Files Third Quarter 2008 Financial Results

BOSTON — November 14, 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 third quarter 2008 financial results today, reporting combined after-tax net income of $57.6 million. This total is comprised of an after-tax net income of $28.3 million for BCBSMA and net income of $29.3 million for BCBSMA HMO Blue (see attached fact sheet for details).

For the third quarter of 2008, BCBSMA earned premiums of $546.2 million. BCBSMA incurred $460.6 million in health care claims. BCBSMA experienced $25.7 million operating income and earned $3.5 million in investment income. BCBSMA incurred $3.7 million in federal income taxes for the reporting period.

For the third quarter of 2008 BCBSMA HMO Blue earned premiums of $1.1 billion. BCBSMA HMO Blue incurred $969.8 million in health care claims. For the reporting period, BCBSMA HMO Blue experienced $29.8 million operating income and a $528 thousand loss in investment income.

"Blue Cross Blue Shield of Massachusetts reported strong third quarter results despite a decline in investment income related to the turmoil in the financial markets," said Allen Maltz, BCBSMA's Chief Financial Officer. Maltz added that BCBSMA's conservative investment portfolio has fared better than many companies but he expects the continued market turbulence to negatively affect the company's year-end results. Maltz said "the historic market volatility we've witnessed over the past several weeks is a reminder of the need for companies like ours to maintain sufficient financial reserves."

BCBSMA continues to be the leading health insurer in Massachusetts, with three million, twelve thousand members as of September 30, 2008. Maltz said BCBSMA is intensifying its efforts to make high quality health care more affordable for its members and accounts. These efforts include:

  • Encouraging greater use of evidence-based medicine to improve the quality of health care and eliminate the overuse, underuse, and misuse of health care services
  • Offering to doctors and hospitals a new alternative quality contract option
  • Undertaking an internal initiative to reduce BCBSMA's administrative expenses

BCBSMA and BCBSMA HMO Blue Inc. Combined results

Q3 2008

Q3 2007

Premiums

$ 1.7 billion

$ 1.7 billion

Claims

$ 1.4 billion

$ 1.4 billion

Operating Income

$ 55.5 million

$ 94.5 million

Investment Income

$ 3.0 million

$ 27.9 million

Federal Income Taxes

$ 3.7 million

$ 11.4 million

Net Income

$57.6 million

$ 110.4 million



BCBSMA results

 

Q3 2008

Q3 2007

Premiums

$ 546.2 Million

$ 562.1 Million

Claims

$ 460.6 Million

$ 437.6 Million

Operating Income

$ 25.7 Million

$ 60.3 Million

Investment Income

$ 3.5 Million

$ 12.7 Million

Federal Income Taxes

$ 3.7 Million

$ 11.4 Million

Net Income

$ 28.3 Million

$ 61.0 Million



BCBSMA HMO Blue results

 

Q3 2008

Q3 2007

Premiums

$ 1.1 Billion

$ 1.1 Billion

Claims

$ 969.8 Million

$ 973.6 Million

Operating Income

$ 29.8 Million

$ 34.2 Million

Investment Income (loss)

$ (528) K

$ 15.2 Million

Net Income

$ 29.3 Million

$ 49.4 Million

 

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.

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Blue Cross Blue Shield of Massachusetts is an Independent Licensee of the Blue Cross and Blue Shield Association.
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