CONTACT: Tara Murray
BOSTON November 15, 2010 Blue Cross and Blue Shield of Massachusetts, Inc. (BCBSMA) and Blue Cross and Blue Shield of Massachusetts HMO Blue, Inc. (BCBSMA HMO Blue) announced its third quarter, statutory financial results today and is reporting a combined after-tax net income of $75.8 million for the period from July through September. Third quarter results reflect an operating income of $55.9 million and an investment income of $23.7 million. Year to date, BCBSMA is reporting a net loss of $3.7 million and an operating loss of $75.6 million.
Allen Maltz, BCBSMA's Chief Financial Officer said, "As the year-to-date results indicate, 2010 remains a challenging year for our business. Due to the seasonal nature of our business, we typically experience improved operating performance in the third quarter and this year was no exception."
Maltz pointed to three main factors effecting third quarter results: a significant improvement in investment income due to the rebound in the financial markets, the lack of a severe flu season like the H1N1 epidemic that adversely affected results a year ago, and a moderation in the use of health care services.
BCBSMA is working aggressively on behalf of its customers and the community to address the unsustainable rate of increase in health care costs. Maltz noted, "making quality health care affordable for our members and customers is the company's highest priority." BCBSMA continues to work with physicians, hospitals and other health care providers to moderate the rising cost of medical care which accounts for approximately 90 cents of every BCBSMA premium dollar. Maltz added, "at the same time we are relentlessly focused on becoming more efficient with the 10 cents of every premium dollar that is spent on administrative costs."
BCBSMA continues to be the leading private health plan in Massachusetts, with 2,895,251 members as of September 30, 2010.
Blue Cross Blue Shield of Massachusetts (www.bluecrossma.com) was founded 73 years ago by a group of community-minded business leaders. Today, headquartered in Boston, BCBSMA provides coverage to nearly 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.