Blue Cross and Blue Shield of North Carolina Reports 2001 Financial Performance.Business Editors/Health & Medical Writers CHAPEL HILL, N.C.--(BW HealthWire)--March 19, 2002 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, today reported increased net income, revenue and enrollment for 2001. For the year ending December 31, 2001, BCBSNC reported net income of $85.6 million, compared with net income of $66.6 million in 2000. Included in the 2001 results are before-tax net realized gains Realized Gain A gain resulting from selling an asset at a price higher than the original purchase price. Notes: There may be tax consequences for a realized profit. on investments of $45.4 million, up from $28 million in the previous year. Results for 2001 reflect the acquisition of Partners National Health Plans of North Carolina Inc., which BCBSNC acquired in October 2001. BCBSNC's 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. was $48.7 million for 2001, compared with $37.3 million in 2000. The company's operating income represents an 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. of 2.4 cents for each dollar of operating revenue operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. in 2001, compared with 2.2 cents in 2000. Total revenue for 2001 increased to $2.08 billion, up 16 percent from 2000. Revenue and claims amounts for 2000 have been reclassified to reflect a change in BCBSNC's financial reporting to be consistent with predominant pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. industry practices. A total of $15.5 million has been reclassified between revenue and medical expenses. Net income and operating income for 2000 did not change. Enrollment increased to more than 2.5 million members, including members served on behalf of other Blue Cross and Blue Shield plans, at the end of 2001, compared with 2.1 million in 2000. "Our results for 2001 represent a continuation of the company's improving operating performance," said Bob Greczyn, president and chief executive officer. "Despite the challenges of sharply rising medical costs and the economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. , we continue to be successful in offering innovative products at competitive premiums that make us attractive to customers." In 2001, BCBSNC responded to customer needs through its new suite of products offering greater choice and flexibility, real-time claims technology for doctors' offices, online customer service features and added discounts on such procedures as laser eye surgery and cosmetic surgery cosmetic surgery, plastic surgery for cosmetic purposes, such as the improvement of the appearance of the face by removing wrinkles or reshaping the nose. . "Last year's performance demonstrated that we are restoring BCBSNC to a sound financial position," said Dan Glaser, chief financial officer. "We're working to build on this improvement to meet the changing expectations of our customers." Blue Cross and Blue Shield of North Carolina is a leader in delivering innovative health care products, services and information to more than 2.5 million members, including 400,000 served on behalf of other Blue plans. The company offers its members the Blue Extras(SM) value-added programs, which provide discounts and information on a wide variety of health-related information at no additional cost. It also offers life, dental, long-term care long-term care (LTC), n the provision of medical, social, and personal care services on a recurring or continuing basis to persons with chronic physical or mental disorders. and disability insurance products. For 69 years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time company has served its customers by offering access to quality health care at an affordable price and has served the people of North Carolina through support of community organizations, programs and events that promote good health. BCBSNC's HMO HMO health maintenance organization. HMO n. A corporation that is financed by insurance premiums and has member physicians and professional staff who provide curative and preventive medicine within certain financial, and POS (1) See point of sale and packet over SONET. (2) "Parent over shoulder." See digispeak. POS - point of sale products have earned Excellent 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. NOTE: Year-end consolidated statement of income attached.
Blue Cross and Blue Shield of North Carolina
Consolidated Statement of Income
Year-to-Date Periods Ended December 31, 2001 and 2000
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(in thousands)
2001 2000
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Revenues:
Gross premiums and fees $ 2,415,536 $ 2,074,391
Amounts attributable to claims
under self-funded arrangements (438,328) (360,162)
Reserve for future medical expenses
for individual products 15,465 18,102
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Operating Revenue 1,992,673 1,732,331
Net investment income 40,630 40,160
Net realized gains 45,399 28,015
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Total Revenue 2,078,702 1,800,506
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Expenses:
Claims and medical expenses 1,557,324 1,303,180
Operating expenses 386,692 391,877
Interest expense 2,818 0
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1,946,834 1,695,057
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Income before income taxes 131,868 105,449
Income tax expense 46,257 38,806
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Net income (loss) $ 85,611 $ 66,643
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Operating Income:
Income before income taxes $ 131,868 $ 105,449
less Net investment income 40,630 40,160
less Net realized gains 45,399 28,015
add Interest expense 2,818 0
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Operating Income $ 48,657 $ 37,274
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Membership:
Underwritten 1,119,556 683,900
Non-Underwritten 991,098 1,201,209
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Subtotal 2,110,654 1,885,109
Members served on behalf of
other Blue Cross plans 399,382 308,430
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Total members served 2,510,036 2,193,539
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