Blue Cross and Blue Shield of Minnesota Reports 2013 Results
EAGAN, Minn., April 1, 2014 /PRNewswire-USNewswire/ -- Blue Cross and Blue Shield of Minnesota and its family of companies (Blue Cross) today announced audited financial results for 2013. Blue Cross closed out the year with net income of $48 million, reflecting positive investment portfolio performance and additional sources of income that offset slight operational losses. The organization reported a net operating loss of $29 million on full-year revenues of $10 billion, for a negative operating margin of three-tenths of one percent (0.3%).
Blue Cross reported more than $9 billion paid in medical claims for the year, representing more than 90 cents of every premium dollar collected going directly to cover health care costs. Additionally, Blue Cross paid more than $166 million in taxes, assessments and surcharges for the year. Overall year-end 2013 enrollment of 2.6 million members represents a slight decrease from year-end 2012.
Audited results for Blue Cross include financial details for Blue Plus, the company's health maintenance organization (HMO) and an affiliate of Blue Cross and Blue Shield of Minnesota. For the year, Blue Plus paid $925 million in claims on revenues of $1 billion. Due to the improved financial performance of the underlying programs, premium deficiency reserves (PDR) of $49 million were released, resulting in a normalized operating margin of 0.3%. Accounting for the PDR results in 2013, operating income calculates to just more than $48 million, with an operating margin of 4.7%. Minnesota Public Health Care Programs (Prepaid Medical Assistance Program, Minnesota Seniors Health Options and MinnesotaCare) represented approximately 90% of Blue Plus' business in 2013. Blue Plus' net income, which includes operating performance combined with results related to Blue Plus' specific investment portfolio of securities, was $73 million for the year.
"I am pleased to report that operating results for 2013 out-performed 2012, indicating a strong trend towards greater stability," said Michael Guyette, president and CEO of Blue Cross and Blue Shield of Minnesota. "Blue Cross invested in infrastructure in 2013 and ensured readiness for health care reform and the MNSure exchange for 2014. This was evidenced as Blue Cross was the first plan to offer a MNsure option in every ZIP code throughout Minnesota. I am encouraged that we are continuing to receive clarity on many of these health reform issues in 2014, which is very important in ensuring that we can continue delivering on our promise to provide affordable access to high quality care for all our members."
Blue Cross provides all information, reports and audited details as required by the State for both commercial and public program products. Detailed financial statements for the organization's regulated businesses are filed with the Minnesota Department of Commerce. A consolidated earnings statement for 2013 results is available at bluecrossmn.com.
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 as a health company: to promote a wider, more economical and timely availability of health services for the people of Minnesota. Blue Cross is a not-for-profit, taxable organization. Blue Cross and Blue Shield of Minnesota is an independent licensee of the Blue Cross and Blue Shield Association, headquartered in Chicago. Go to bluecrossmn.com to learn more about Blue Cross and Blue Shield of Minnesota.
SOURCE Blue Cross and Blue Shield of Minnesota