Blue Cross Blue Shield of Michigan says it is a reporting a “relatively small” net income loss of $2.5 million for 2012.
Blue Cross said that number is reported today in a filing with state regulators, and is made on a statutory accounting basis. The company says the results are driven by health insurance underwriting losses of $221 million that are primarily attributable to insurance plans for individuals.
Those losses were largely offset by what Blue Cross called “strong investment performance, continued membership and revenue growth, and the company’s focus on initiatives to improve the quality and efficiency of health care by working in partnership with doctors and hospitals.”
Blue Cross Blue Shield of Michigan is a non-profit healthcare giant with more than 4.4 million Michigan members. Membership has increased two consecutive years.
Overall revenues for Blue Cross and its subsidiaries combined are reported at $20.9 billion for 2012, up from $20.4 billion in 2011.
The company says its overall health insurance underwriting loss for 2012 was more than in 2011, when the number was pegged at $48.8 million.
The financial loss on insurance plans for individuals is a long-standing concern for Blue Cross. The individual market accounts for about 9 percent of Blue Cross membership.
Upcoming changes at the federal level – such as mandated health insurance marketplaces – could help reduce the financial losses in that area over the long term.
Also, the Michigan Legislature is near the completion of approving legislation that would make Blue Cross a nonprofit mutual insurer, a structure that would allow it to more easily and quickly change rates.
Blue Cross says that Dan Loepp, the company’s president and CEO, had a base salary of $1.4 million for 2012 – up 2.5 percent from 2011. Loepp’s total compensation for 2012 was $3.8 million including incentives and other factors, including a change in the taxable value of his pension.
Email Tim Martin at tmartin4@mlive.com. Follow him on Twitter: @TimMartinMI
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