Blue Cross and Blue Shield of North Carolina Attracts Customers, Boosts Operating Income Through 3rd Quarter.Business Editors/Health & Medical Writers CHAPEL HILL, N.C.--(BW HealthWire)--Nov. 17, 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, reported continued strong growth in membership and 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. through the third quarter of 2000. For the period ending Sept. 30, 2000, the company earned $36.5 million in operating income compared to a loss of $12.3 million during the same period last year. The company attributes its financial performance to customer growth, new products, attractive value-added programs, improved service and a series of new technology solutions. "Our strong third quarter results represent another milestone in our long-term efforts to transform our company into a nimble nim·ble adj. nim·bler, nim·blest 1. Quick, light, or agile in movement or action; deft: nimble fingers. See Synonyms at dexterous. 2. , customer-focused health and information company," said Bob Greczyn, president and chief executive officer of BCBSNC. "We've empowered customers to make good decisions about their health, designed products around their needs and worked to make the whole health care experience easier." BCBSNC posted total revenue of more than $1.5 billion through the third quarter, an increase of 4.8 percent or $74.2 million above the company's performance for the first nine months of 1999. The company earned net income of $46.8 million, representing 3 percent of revenue or 3 cents on the premium dollar. "We've made these gains by adapting to a changing health care market, offering customers greater choice and convenience while maintaining the quality that has always been associated with our brand," said Dan Glaser, senior vice president and chief financial officer of BCBSNC. Business growth and lower medical costs during the first nine months of 2000 helped improve gross margin by $75.6 million. A three-tier copayment co·pay·ment n. A fixed fee that subscribers to a medical plan must pay for their use of specific medical services covered by the plan. copayment, n for prescription drugs prescription drug Prescription medication Pharmacology An FDA-approved drug which must, by federal law or regulation, be dispensed only pursuant to a prescription–eg, finished dose form and active ingredients subject to the provisos of the Federal Food, Drug, and successful programs to help customers stay healthier contributed to lower medical costs. Blue Cross and Blue Shield of North Carolina is a leader in delivering innovative health care products, services and information to nearly 2 million members throughout North Carolina. BCBSNC has earned Commendable com·mend tr.v. com·mend·ed, com·mend·ing, com·mends 1. To represent as worthy, qualified, or desirable; recommend. 2. To express approval of; praise. See Synonyms at praise. 3. 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 licensee n. a person given a license by government or under private agreement. (See: license, licensor) LICENSEE. One to whom a license has been given. 1 M. Q. & S. 699 n. of the Blue Cross and Blue Shield Association
BLUE CROSS AND BLUE SHIELD OF NORTH CAROLINA and SUBSIDIARIES
Consolidated Statement of
Operations
UNAUDITED
For The Year-to-Date Periods Ended
September 30, 2000 and 1999
(Dollars in Thousands)
Change
-------------
Favorable
2000 % 1999 % (Unfavorable)
------ ----- ------ ----- -------------
Premium and Fees $1,534,277 100.0 $1,460,116 100.0 $74,161
Less: Amounts
Attributable to
Claims under
Self-Funded
Arrangements 264,890 17.3 256,179 17.5 8,711
--------------------------------------------------
1,269,387 82.7 1,203,937 82.5 65,450
Medical Expenses 957,708 62.4 967,818 66.3 10,110
--------------------------------------------------
Gross Margin 311,679 20.3 236,119 16.2 75,560
Operating Expenses 275,167 17.9 248,427 17.0 (26,740)
----------- ------ --------- ------ -------------
Operating Income
(Loss) 36,512 2.4 (12,308) (0.8) 48,820
Investment Income 38,554 2.5 35,561 2.4 2,993
----------- ------ --------- ------ -------------
Income Before Income
Taxes 75,066 4.9 23,253 1.6 51,813
Income Tax Provision 28,271 1.8 8,188 0.6 (20,083)
----------- ------ --------- ------ -------------
Net Income $46,795 3.1 $15,065 1.0 $31,730
=========== ====== ========= ====== =============
Membership
Underwritten 680,199 686,261 (6,062)
Non-Underwritten 1,429,968 1,217,178 212,790
------------- -------------- --------------
Total Membership 2,110,167 1,903,439 206,728
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