888-765-5400Blue Cross At A Glance
Employees 4,617-Customers 3.7 million (including nearly 900,000 served on behalf of other Blue Plans) -Customer calls annually 4.4 million -Customer claims (volume in 2009) nearly 47.2 million – Customer claims paid in 2009 over $11.3 billion (insured and self funded Consolidated net income $107.3 million
Key Points about Financial Results:
• Blue Cross and Blue Shield of North Carolina is a stable company that provides a valuable service to more than 3.7 million customers. We know North Carolinians depend on us.
• BCBSNC had a net income ratio of 2.1 percent for 2009. This profit of 2.1 cents for each dollar of revenue was down from 3.6 percent in 2008, and below the company’s target range of 3.5 to 4.5 percent. The company’s profitability was affected by many factors including the investment made in improving the health of our customers by waiving generic drug copayments for the first 6 months of 2009, higher medical costs due to more medical visits, prescription drugs and use of medical care due to H1N1 and seasonal flu (for example) and slower membership growth.
• During 2009, BCBSNC spent more of every revenue dollar on the medical care of its customers – nearly 87 cents per dollar, compared to slightly more than 85 cents in 2008. The rest goes for customer service and technology.
• Reserves: To keep our reserves in perspective, months in reserve represent just 3.6 months of claims and administrative expenses. That’s below our 25 year average of 4 months and is in compliance with state law, which calls for reserve levels of three to six months. Our level of reserves is prudent and fiscally responsible, particularly when you consider the value of claims we handle annually exceeds $11.3 billion (for insured and self funded claims).
Key Points about Executive Compensation:
• The company’s leadership team has kept this business in a solid position during these difficult economic times. This is the leadership team that has kept its commitment to our customers.
• Less than a third of a cent of every revenue dollar goes to executive compensation, which means that executive pay has a nominal impact on premiums.
• For all our positions, we seek to pay at the mid-range of what comparable companies pay. Our pay philosophy is also results oriented. If the company does not meet its goals, executives stand to lose more than half of their compensation.
The above information is from a Blue Cross Blue Shield News Release on March 1st, 2010.
For more information on health insurance coverage in North Carolina, please visit our website at www.nchealthplans.com or call our toll free number 888-765-5400 and speak with one of our qualified agents. Our agency provides coverage for health insurance in North Carolina through Blue Cross Blue Shield of North Carolina (BCBSNC). You may qualify for a 15% healthy lifestyle discount if you are in excellent health. Call us for details.