Excellus BlueCross BlueShield today reported it generated net income of $53 million in 2013, down from $106 million in 2012.
The Rochester–based nonprofit firm, the largest health insurer in Central New York, said it generated $6.3 billion in premium revenue last year, up from $6 billion in 2012.
The data were part of the annual financial report Excellus filed with the New York State Department of Financial Services, it said in a news release.
(Sponsored)
Financial Inclusion through Affordable and Safe Banking Products
Financial inclusion is the accessibility of useful and affordable financial products and services to all individuals and businesses. Financial institutions have made strides in advancing these practices, most recently in
Avoid the Employment Law Mistakes that Threaten Your New Business
Amid the excitement and uncertainty that accompany the opening of a new business, entrepreneurs often overlook basic employment law requirements that can cost them dearly. These include how they classify
In the filing, Excellus also reported that it made a $12.8 million retirement payment to former CEO David Klein.
Excellus generated premium revenue from a membership base of more than 1.8 million members in 2013.
The health insurer cited “stronger-than-expected” investment income for the net-income figure, despite current year operating losses of $102 million in the health plan’s Medicaid Managed Care and Family Health Plus policies. The safety net lines of business involved about 12 percent of its membership, Excellus said.
The health insurer’s combined operating margin and administrative expenses were about $50 million less in 2013 than in 2012, according to Excellus. The operating margin and administrative expenses fell 7.4 percent, while medical-benefit spending on membership increased $416 million, or 7.9 percent.
The year gone by included participation in NY State of Health, New York’s health-insurance marketplace, in all of the company’s markets, Christopher Booth, CEO of Excellus BCBS, said in the news release.
Excellus said it places its annual profit into the health plan’s reserves for use in future years. Health-plan reserves amount to $1.4 billion, which allows the plan to sustain its A- credit (strong) rating with Standard & Poor’s and its B++ (good) financial strength rating from A.M. Best Company, Excellus said.
That level of reserves represents $837 per member, the health insurer said.
Excellus BlueCross BlueShield is the largest division of its parent company, the Rochester–based Lifetime Healthcare Companies.
Contact Reinhardt at ereinhardt@cnybj.com
