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BLUE CROSS REPORTS STRONG THIRD-QUARTER FINANCIAL RESULTS

 CLEVELAND, Nov. 23 /PRNewswire/ -- Blue Cross & Blue Shield of Ohio (BCBSO) today released third-quarter financial results indicative of an exceptionally strong finish for 1993.
 For the third quarter and nine months ended Sept. 30, 1993, reserves rose to $262.1 million, a 34.3 percent improvement over a year ago. Net income almost doubled from the same quarter last year.
 "These results have been achieved through good, old hard work -- obtaining the best provider prices and maintaining the lowest internal administrative costs," said Ronald H. Rafal, BCBSO executive vice president and chief financial officer. "Not a penny of our income is from speculative real estate investments, junk bonds or out-of-state, for-profit health insurance subsidiaries."
 The following year-to-date figures are in accordance with Generally Accepted Accounting Principles:
 -- Net revenue increased $127.2 million to almost $1.3 billion at Sept. 30, 1993, an 11.1 percent increase compared with Sept. 30, 1992.
 -- Net income totaled $48.8 million, an increase of $21.5 million from the $27.3 million net income recorded for the same period the year before.
 -- Reserves for the protection of policyholders increased 34.3 percent ($67 million) to $262.1 million at Sept. 30, 1993, versus $195.1 million a year earlier.
 For the third quarter alone, revenue increased $47.6 million (up 12.2 percent), investment income increased 20.8 percent, and net income after taxes totaled $19.2 million versus $9.9 million the year before.
 BCBSO is a not-for-profit mutual insurance company that pays taxes just like commercial carriers.
 BCBSO continues to hold the line on administrative expenses, which, as a percentage of net revenue, dropped from 11.7 percent at quarter-end Sept. 30, 1992, to 11.2 percent for the corresponding period in 1993.
 Other developments in the third quarter of 1993:
 -- A federal appeals court reversed a $22 million judgment against BCBSO in connection with a lawsuit by 13 hospitals in West Virginia resulting from BCBSO's rescue of 250,000 customers covered by an insolvent Blue plan in that state.
 -- BCBSO and the Ohio Bureau of Workers' Compensation signed a two- year contract under which the company will process Bureau claims at a savings to Ohio taxpayers of up to $31.6 million a year.
 -- The Lorain County Board of Mental Retardation and Developmental Disabilities contracted with BCBSO for health insurance coverage for its 270 employees at savings to county taxpayers of up to a half-million dollars. Savings for Ohio taxpayers total more than $75 million in a variety of contracts covering public employees.
 For further information or a copy of the quarterly financial statement, call David Eden of William Silverman & Company at 216-696-7750.
 -0- 11/23/93
 /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

KL-AR -- CL009 -- 7222 11/23/93 11:17 EST
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Publication:PR Newswire
Date:Nov 23, 1993
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