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 CLEVELAND, Aug. 27 /PRNewswire/ -- Blue Cross & Blue Shield of Ohio (BCBSO) today released second-quarter financial results that show strong performance for the first half of 1993, especially the building of reserves for policyholder protection to a high of more than $242 million.
 There were substantial increases in revenues and net income in addition to a reduction in the company's administrative expense (overhead) ratio. Also, the average inpatient cost per case for BCBSO policyholders increased only 2.8 percent since June 1992, less than the general rate of inflation, due to various company cost-containment measures.
 "We are particularly pleased by the fact that we are continuing to save more money for healthcare consumers," said Kent W. Clapp, BCBSO president and chief operating officer. "Ohio taxpayers, too, are reaping significant benefits from our aggressive cost-cutting."
 BCBSO is the largest health insurer of state and local governmental bodies in Ohio. According to state estimates, BCBSO will save Ohio taxpayers more than $75 million over a three-year period by insuring various state employees and retirees.
 Second-quarter revenue increased $45.4 million (up 11.8 percent), income from underwriting increased 36.9 percent and net income improved $1.1 million, an 8.5 percent increase from the prior year. BCBSO continued to hold the line on administrative expenses, which remained constant as a percentage of net revenue for the second quarter of 1993 compared with the corresponding period in 1992.
 Net revenue totaled $432.3 million for second-quarter 1993 versus $386.8 million a year ago. Quarterly net income was $14.8 million versus $13.7 million the year before.
 The following year-to-date results are in accordance with Generally Accepted Accounting Principles (GAAP):
 -- Reserves for the protection of policyholders increased 31.7 percent ($58.4 million) to $242.9 million at June 30, 1993, versus $184.5 million a year earlier.
 -- Net income rose to $29.6 million, an increase of $12.1 million from the $17.5 million recorded for the first half of 1992.
 -- Net revenues increased $79.6 million to $838.5 million at June 30, 1993, a 10.5 percent increase compared with $758.9 million at June 30, 1992.
 -- Income from underwriting of $24.7 million represented a significant increase compared with $9.5 million for the same period in 1992.
 -- Administrative expenses as a percentage of net revenue for the first half of 1993 dropped to 11.4 percent from 11.6 percent in the first half 1992.
 -0- 8/27/93
 /NOTE TO EDITORS: For further information or a copy of the quarterly financial statement, call contact/
 /CONTACT: David Eden of William Silverman & Company, 216-696-7750, for Blue Cross & Blue Shield of Ohio/

CO: Blue Cross & Blue Shield of Ohio ST: Ohio IN: INS SU: ERN

AR -- CL003 -- 6568 08/27/93 11:11 EDT
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Publication:PR Newswire
Date:Aug 27, 1993

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