EAGAN, Minn., April 1 /PRNewswire/ -- Minnesota’s largest health plan today released information on its 2004 financial performance. With $6.6 billion in 2004 revenues, Blue Cross and Blue Shield of Minnesota and its family of companies (Blue Cross), is competing successfully in the national market while carrying out a 72-year nonprofit mission in highly efficient administration, investments in members’ health, and modest operating gains.
Operating gain was point six (0.6) percent of revenues, which is within the plan’s target range to meet regulatory mandates for its financial security and to make investments that help keep our members healthy.
“Blue Cross is a taxable nonprofit and does not generate profits for shareholders,” said Mark W. Banks, M.D., Blue Cross President and CEO. “Those revenues go toward paying our members’ medical costs, developing affordable health care options, investment in programs and services that make Blue Cross members live healthier lives and toward our reserve requirements. Our 2004 reserves were at $640 million, which is about $246 per member.”
The plan attributes a portion of its growth to its Options Blue consumer directed product, which has given both employers and individuals new, affordable health care options. With 96,000 enrollees, Options Blue ranks 9th nationally in total enrollment and 5th nationally in the number of employer clients. Overall, Blue Cross membership increased by nearly 50,000 in 2004. Since 1999, enrollment outside of Minnesota has grown 80 percent to nearly a million members. Besides affordability, Blue Cross encourages purchasers of these consumer directed products to include 100 percent coverage for preventive services and wellness visits, etc., without counting that against the members’ deductibles. Most purchasers select this coverage. Combined with new cost and quality tools and health improvement resources available to members, members are encouraged to use these visits to help them stay healthier and save their health savings account dollars.
Other results include: -- An administrative expense ratio of 6.2% of revenue, excluding brokers’ fees, taxes and assessments, health improvement and cost containment. Including brokers’ fees, taxes and assessments, the ratio is 8.5%. -- $106.8 million in taxes and assessments paid. Blue Cross is a taxable nonprofit. -- $100 million reinvested in member health and cost containment measures to save lives and save money. The plan’s BluePrint for Health care support program, for instance, is showing a greater than 2 to 1 return. -- Continued fluctuation in Blue Plus results. In 2004, Blue Plus had a $34 million operating gain. Just last year, in 2003, it was $3.3 million. With the 2004 gain, Blue Plus remains within its required historical reserve range, at 2.88 months. Blue Plus’ general administrative expense ratio was 4.8% of revenue, including broker fees, taxes, assessments, health improvement and cost containment. The HMO invested $11.6 million in member health improvement and cost containment programs.
The 2004 financial results were released in filings made today with state regulators on the plan’s Blue Plus HMO and its Blue Cross fully-insured business, as well as the 2004 results of other Blue Cross business units. The companies’ annual consolidated earnings statement reflects the results and will be published in the Blue Cross’ Clear Blue annual report in June. Blue- branded businesses comprise more than 96% of revenues for the health plan.
Blue Cross and Blue Shield of Minnesota, with headquarters in the St. Paul suburb of Eagan, was chartered in 1933 as Minnesota’s first health plan and continues to carry out its charter mission today: to promote a wider, more economical and timely availability of health services for the people of Minnesota. A not-for-profit, taxable organization, Blue Cross is the largest health plan based in Minnesota, covering more than 2.6 million members in Minnesota and nationally through its health plans or plans administered by its affiliated companies. Blue Cross and Blue Shield of Minnesota is an independent licensee of the Blue Cross and Blue Shield Association, headquartered in Chicago.
Blue Cross and Blue Shield of Minnesota
CONTACT: Karl Oestreich, +1-651-662-1502, Pager, +1-651-610-7422, orMonika Strom, +1-651-662-6889, Pager, +1-651-629-3975, both of Blue Cross andBlue Shield of Minnesota