Blue Cross and Blue Shield of North Carolina Adds Members, Boosts Earnings in First Quarter 2000.Business Editors/Health and Insurance Writers CHAPEL HILL, N.C.--(BW HealthWire)--May 19, 2000 Blue Cross and Blue Shield Blue Shield A US not-for-profit health care insurer that is a reimbursement intermediary for physicians. Cf Blue Cross. of North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. (BCBSNC BCBSNC Bluecross Blueshield North Carolina ), the state's largest health insurer, achieved significant gains in income and membership during the first quarter of 2000. For the period ending March 31, 2000, the company posted $9.7 million in operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. , a $15.2 million improvement over the same period in 1999. Net income reached $11.3 million, a $9.8 million increase over last year. BCBSNC gained 140,000 members over the first quarter in 1999, bringing total membership to two million. "Thanks to a greater focus on the customer, innovative programs and better overall service, more people are choosing Blue Cross," said Bob Greczyn, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "We've made a promise to simplify things for our customers while assisting and empowering them to take more control of their own health." The company's total revenue for the quarter reached $496 million, an increase of $22.4 million, or five percent, over the previous year. Gross margins in the first quarter improved by $16.5 million over 1999 due to an increase in business and lower than expected medical expenses. "During the first quarter, we achieved our first operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. since 1994 and had significant growth in our business," said Dan Glaser, chief financial officer. "To make sure the trend continues, we must continue to reduce administrative expenses and hold the line on medical costs and premium increases." Blue Cross and Blue Shield of North Carolina is the state's largest health insurer, with two million members and a 67-year history of providing quality, affordable health care coverage for North Carolinians North Car·o·li·na Abbr. NC or N.C. A state of the southeast United States bordering on the Atlantic Ocean. It was admitted as one of the original Thirteen Colonies in 1789. First settled c. . BCBSNC has earned Commendable Accreditation from the National Committee for Quality Assurance National Committee for Quality Assurance Medical practice A private, not-for-profit organization which has become the leading accreditor of managed care plans; in site visits, NCQA reviewers evaluate a managed care plan in terms of quality management, physicians' (NCQA NCQA National Committee on Quality Assurance, see there ), an independent, not-for-profit organization dedicated to measuring the quality of America's health care. Blue Cross and Blue Shield of North Carolina is an independent licensee of the Blue Cross and Blue Shield Association
(First Quarter 2000 Consolidated Statement of Operations See Income statement. follows this release.)
BLUE CROSS AND BLUE SHIELD OF NORTH CAROLINA and SUBSIDIARIES
Consolidated Statement of Operations
For The Year-to-Date Periods Ended
March 31, 2000 and 1999
(Dollars in Thousands)
Change
--------
Favorable
2000 1999 (Unfavorable)
-------- -------- --------------
Premium and Fees $495,949 $473,592 $22,357
Less: Amounts Attributable to
Claims under Self-Funded
Arrangements 84,528 79,270 5,258
-------- -------- --------------
411,421 394,322 17,099
Medical Expenses 318,616 318,049 (567)
-------- -------- --------------
Gross Margin 92,805 76,273 16,532
Operating Expenses 83,147 81,787 (1,360)
-------- -------- --------------
Operating Income (Loss) 9,658 (5,514) 15,172
Investment Income 7,863 7,949 (86)
-------- -------- --------------
Income Before Income Taxes 17,521 2,435 15,086
Income Tax Provision 6,191 862 (5,329)
-------- -------- --------------
Net Income $11,330 $1,573 $9,757
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Membership
Underwritten 665,858 711,386 (45,528)
Non-Underwritten 1,365,474 1,179,763 185,711
---------- --------- -----------
Total Membership 2,031,332 1,891,149 140,183
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