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BLUE CROSS AND BLUE SHIELD OF FLORIDA REPORTS CONTINUED SUCCESS OF MANAGED CARE

 BLUE CROSS AND BLUE SHIELD OF FLORIDA
 REPORTS CONTINUED SUCCESS OF MANAGED CARE
 JACKSONVILLE, Fla., May 15 /PRNewswire/ -- Blue Cross and Blue Shield of Florida announced today $11.0 million in operating income for the first quarter of 1992 by its Health Maintenance Organizations (HMO) -- Health Options, Inc. and Capital Health Plan.
 "We are very encouraged by the continued strong performance of our HMO program. By better managing health care costs, this program provides a tremendous value to customers," said Richard Thomas, senior vice president of finance.
 Overall, Blue Cross and Blue Shield of Florida experienced operating income of $28.9 million for the first quarter of 1992. Investment and related income was up 34.6 percent from $10.7 million for the first quarter of 1991 to $14.4 million for the first quarter of 1992.
 Corporate revenue for the first quarter increased by 12.7 percent over the same period a year ago, from $410.0 million to $462.1 million. At the end of the first quarter of 1992, policyholders' equity was $328.5 million compared to $232.7 million at the end of the first quarter of 1991.
 Policyholders' equity is a measure of the company's strength. "We are increasing the equity to match growth in our business and our customer base. We use the equity to develop new systems, to provide start-up costs needed to create innovative new programs for customers like our HMO, while also providing a safety net for the future," said Thomas.
 "Performance in the health insurance business generally follows a six-year cycle with three years of gains followed by three years of losses. We are building our equity now, so we can meet the requirements if a downturn occurs," said Thomas. "We have still not regained the high point of 3.8 months of claims expense held in reserve that we achieved in 1986 before suffering losses in 1987 and 1988. At the end of the first quarter of 1992, 2.4 months of claims expense was held in reserve," said Thomas.
 Blue Cross and Blue Shield of Florida is rated "A+" by Standard and Poors.
 BCBSF FINANCIAL SUMMARY (in millions)
 1Q 1Q
 1992 1991
 Revenue $ 462.1 $ 410.0
 Claims Expense 343.9 301.5
 Total Expense 433.2 379.8
 Operating Income 28.9 30.2
 Investment & Related Income 14.4 10.7
 Provision for Income Tax 9.7 3.8
 Net Income 33.6 37.1
 Total Assets 796.5 706.1
 Policyholders' Equity 328.5 232.7
 -0- 5/15/92
 /CONTACT: Marianne Elden, 904-791-8075, or Patrick McCabe, 904-791-6123, both of Blue Cross and Blue Shield of Florida/ CO: Blue Cross and Blue Shield of Florida ST: Florida IN: INS SU: ERN


JJ-AK -- FL015 -- 0902 05/15/92 16:03 EDT
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Publication:PR Newswire
Date:May 15, 1992
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