Minnesota Blue Cross and Blue Shield Report 2021 Financial Results
EAGAN, Minn., April 1, 2022 /PRNewswire/ — Blue Cross and Blue Shield Minnesota The family of companies (Blue Cross) today announced its audited financial results for 2021. For the year, the organization recorded a negative operating margin of less than one percent, resulting from a loss operating $3.5 million to $14.1 billion in total revenue. Net income before tax of $557.6 million was primarily driven by the divestment of Further, a subsidiary and leading provider of consumer health savings accounts and benefits administration services.
Audited results for 2021 include consolidated financial statements for businesses operating under Aware Integrated, Inc. (AII), a not-for-profit corporation and parent organization.
For 2021, AII has administered $12.7 billion in the reimbursement of medical expenses, with approximately 90 cents of every premium dollar is used directly to cover members’ healthcare costs. In addition, the organization paid over $67.4 million in taxes, assessments and surcharges. Total membership enrollment for the year ended at approximately 2.7 million.
“Financial performance was in line with our expectations for 2021, allowing us to provide reliable coverage to members and make investments in the communities we serve,” said Dana EricksonPresident and CEO of Blue Cross and Blue Shield of Minnesota. “Overall, we are in a strong position to advance our strategic objectives related to overall growth, health optimization and cost mitigation efforts that can deliver premiums at even more affordable and competitive rates. ”
Financial results for Blue Cross and Blue Shield Minnesota
Lines of business served by Blue Cross in 2021 include small and large employer plans and a suite of Medicare offerings – Medicare Advantage, Platinum BlueSM (Cost of health insurance); and MedicareBlueSM Rx (Medicare Part D). Collectively, Blue Cross declared an overall operating loss of $23.8 million due to ongoing costs related to the COVID-19 pandemic.
Financial results of Blue Plus
Blue Plus is a health maintenance organization (HMO) serving the individual market as well as the Prepaid Medical Assistance Program (PMAP), the state Medicaid program, and MinnesotaCare, the health care program for low-income families. Blue Plus achieved an operating profit of $67.3 millionreflecting significant new enrollments in public programs even as federal law continued to require all states to maintain existing Medicaid eligibility and coverage during the pandemic.
Social impact in 2021
In 2021, Blue Cross provided $17.7 million in community investments to support access to food, housing security, and other factors that affect health outside of a hospital or clinic.
To help ensure fair and equitable distribution of the COVID-19 vaccine, Blue Cross has partnered with the Minnesota Department of Health (MDH), Metro Transit, and the Metropolitan Council, helping deliver more than 7,200 vaccines to 170 clinics in 42 Minnesota counties. Blue Cross employee volunteers staffed the mobile clinics for more than 20 weeks throughout the spring and summer of 2021. This collaboration earned the Minnesota Department of Human Services Commissioner’s Circle of Excellence Award .
Blue Cross has also reinforced its commitment to addressing racial and health inequalities by pledging to $5 million to the University of Minnesota establish the Center for Research on Anti-Racism for Health Equity. With dr. Rachel HardmanBlue Cross Associate Professor and Professor of Health and Racial Equity, as founding director, the center will develop evidence-based anti-racism research to understand and measure the impact of racism on health.
Additionally, Blue Cross employees donated nearly 20,000 hours to charities in 2021 through the company’s volunteer paid time off opportunity. The full 2021 Community Report is available at Bluecrossmn.com/socialimpact.
Additional recognition
- A perfect score of 100 on the Corporate Equality Index and being named one of the “Best Workplaces for LGBTQ+ Equality” by the Human Rights Campaign Foundation.
- Recognized with a Above and beyond by the Employer Supporting Guard and Reserve (ESGR) for excellence in providing benefits to employees who serve in the National Guard, Reserves or have military family members.
- Named a Beyond the Yellow Ribbon Company for efforts to hire and retain veterans, community outreach activities and active support of military organizations, and training our clinical staff on referral resources to better assist our veterans.
- Five out of five stars were awarded to Blue Plus for its SecureBlueSM (SNP HMO) Minnesota 2022 Senior Health Options Plan from the Centers for Medicare & Medicaid Services (CMS). Additionally, Blue Cross earned a 4.5 out of five star rating for its 2022 Medicare Advantage Plans, Platinum BlueSM Cost plans and MedicareBlueSM Rx Plans Part D.
- The Blue Plus HMO received a Rated 4.5 out of 5 in the 2021 National Quality Assurance Committee (NCQA) Medicaid Health Plan Ratings Overall, with a score of 5 out of 5 for patient experience.
AII serves as the holding company for all affiliates and subsidiaries, including the following regulated companies associated with Blue Cross:
Blue Cross and Blue Shield Minnesota — A not-for-profit, licensed health services company independent of the Blue Cross and Blue Shield Association.
Blue More – A not-for-profit HMO independently licensed by the Blue Cross and Blue Shield Association that offers health plans and contracted provider networks nationwide Minnesota to local, state and national individuals and groups.
MII Life Insurance, Inc., d/b/aSM (formerly SelectAccount®) — An independent licensee of the Blue Cross and Blue Shield Association who acted as a third-party administrator of medical expense accounts included in consumer health plans nationwide.
Blue Cross provides all information, reports and verified details required by the state of minnesota for commercial and public programs. Detailed financial statements for the organization’s regulated businesses are filed with the Minnesota Department of Commerce.
About Blue Cross and Blue Shield Minnesota
For nearly 90 years, Blue Cross and Blue Shield of Minnesota (bluecrossmn.com) has supported the health, well-being and peace of mind of our members by striving to ensure equitable access to high-quality care at an affordable price. Our 2.7 million members are found in all Minnesota county, all 50 states and on four continents. Blue Cross and Blue Shield Minnesota is an Independent Licensee of the Blue Cross and Blue Shield Association.
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SOURCE Blue Cross and Blue Shield Minnesota