Wednesday, March 3, 2010

BCBSNC releases year-end financial results

BCBSNC’s March 1 press release summarized 2009 as a stable year in both customer retention and financial performance for the Triangle-based company.

Despite the recent criticism from Washington of insurance companies, BCBSNC reports a profit margin of only 2.1% in 2009, down from 3.6% in 2008 and below their target range of 3.5-4.5%. BCBSNC attributes this decrease to higher medical costs and stunted membership growth due to current economic conditions. The company’s overall membership held steady from 2008 to 2009 at over 3.7 million members.

BCBSNC also reports spending more on customer medical care in 2009, with nearly 87 cents of every premium dollar going directly to medical costs compared to 85 cents in 2008. Costs associated with H1N1 and the seasonal flu and the company’s six month waiver of generic drug copayments both contributed to the increase in medical care spending.

In 2009, the company paid over $11.3 billion in claims for insured and self-funded customers and nearly $134 million in local, state and federal taxes.

2 comments:

  1. I have seen the reports on Anthem and the huge rate increases across the country. Is that indicative of what I can expect in my company over the next year?

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  2. Great question--there are several factors that influence group health insurance rates including the size of your company, employee demographics, claims history, and plan design. These are the factors that our Employee Benefits Consultants look at in order to deliver the best benefits at the best value for your company and your employees.

    Without knowing more information about your business, it is difficult to say how your rates may change from year to year. Feel free to contact Senn Dunn to get started with our Employee Benefits team to determine the best benefits plans for your business.

    800.598.7161
    senndunn.com

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