EAGAN, Minn., April 17 /PRNewswire/ -- Blue Cross and Blue Shield of Minnesota (Blue Cross) today released its financial results for 2007. The company reported an overall net gain of 0.3 percent ($25.1 million) on full-year revenues of $8.4 billion, with $7.7 billion in medical claims costs. Investment income offset $104 million in operating losses. Blue Cross remains financially strong with statutory reserves equal to nearly three months of claims and operating expenses.
More than 90 cents of every health care dollar collected by Blue Cross in 2007 went to pay for members' health care costs. Administrative expenses -- including taxes, assessments, agent fees, member health-improvement initiatives and cost containment programs -- accounted for 9.5 cents per dollar. Additionally, Blue Cross paid a total of $77 million in taxes and assessments.
"As a nonprofit organization, Blue Cross strives to hold sufficient financial reserves to assure we honor our promises to provide coverage for our members, while keeping premiums as affordable as possible," said Michael Morrow, executive vice president and chief financial officer. "In 2007, positive returns on our investments in stocks and bonds allowed us to cover all costs and support continuing investment in better products and services for our members, such as our expanded suite of Medicare products and the new Simply Blue program for individual members."
"At the same time, our operating losses reflect the continually rising costs of medical care. Blue Cross paid out more money for care than we collected in premiums. For 2008, we have implemented new cost-savings programs, but have also had to adjust revenues to reflect the rising costs of care. We're on track to break-even on an operating basis in 2008."
Overall plan enrollment increased approximately 186,000 in 2007 to 2.9
million (2,893,229) members. Membership among consumer-directed health
plans saw strong grow
|SOURCE Blue Cross and Blue Shield of Minnesota|
Copyright©2008 PR Newswire.
All rights reserved