CONTACT: Sharon Torgerson
Reports modest 1.1% net margin
BOSTONFebruary 28, 2014 - Blue Cross Blue Shield of Massachusetts (BCBSMA), Inc. and Blue Cross Blue Shield of Massachusetts HMO Blue, Inc. announced a combined after-tax net income of $69.1 million and an operating loss of $17.2 million for its calendar year 2013 financial results. BCBSMA, the leading private health plan in Massachusetts with 2.8 million members as of December 31, 2013, paid more than $180 million in federal, state and municipal taxes and assessments in 2013, up from $133 million in 2012.
"Our 2013 operating performance reflects our disciplined effort to keep premiums as low as possible," said Allen Maltz, Chief Financial Officer at BCBSMA. "It also reflects our continued investment in new capabilities such as technology enhancements that will help us deliver even greater value to our customers and members while meeting the obligations of federal and state health reform."
Maltz added that the company is committed to working collaboratively with physicians and hospitals to address the cost of medical care, the largest driver of premium increases. "As good stewards of our members' premiums, we're working hard to ensure that the 90% of the premium dollar used to pay for medical care is being used in the most cost-effective manner." He said the company is also tightly managing the 10% of premiums used for administrative purposes noting that BCBSMA's total administrative spending was lower in 2013 than it was five years ago.
BCBSMA's affordability efforts will continue throughout 2014 as the not-for-profit health plan continues to tightly manage costs while ensuring that members receive the most for their health care premiums. Those efforts include:
2013 Achievements include:
About Blue Cross Blue Shield of Massachusetts
Blue Cross Blue Shield of Massachusetts (www.bluecrossma.com) is a community-focused, tax-paying, not-for-profit health plan headquartered in Boston. We are the trusted health plan for more than 31,500 Massachusetts employers and are committed to working with others in a spirit of shared responsibility to make quality health care affordable. Consistent with our corporate promise to always put our 2.8 million members first, we are rated among the nation’s best health plans for member satisfaction and quality. Follow us on Facebook, Twitter, YouTube and Google+.
1NCQA's Health Insurance Plan Rankings 2013–2014Private, 2NCQA's Health Insurance Plan Rankings 2013–2014Medicare
**Plan performance Star Ratings are assessed each year and may change from one year to the next. Rankings refer to Medicare HMO Blue ValueRx, Medicare HMO Blue PlusRx and Medicare PPO Blue PlusRx Medicare Advantage Plans.