Blue Cross Blue Shield of North Dakota (BCBSND) reported $22.9 million in net income in 2011 as the company completed another successful year, while providing its nearly 470,000 members with high quality, affordable health care coverage. As a not-for-profit mutual insurance company, all of BCBSND's profits left over after paying members' medical claims, operating expenses and taxes have been added to the company's $279.2 million in reserves that help provide a safety net for higher than expected member medical bills.
In 2010, BCBSND reported $18.9 million in net income. BCBSND paid out $917.3 million in members' medical claims in 2011, up from $874.6 million in 2010. Claims paid by BCBSND have more than doubled in the last decade, increasing from $453.4 million in 2001 to $917.3 million in 2011, following a national trend of rapidly rising health costs. Higher claims costs have resulted in BCBSND premium revenue increasing from $525.3 million in 2001 to $1.03 billion in 2011. BCBSND's administrative costs of roughly 7 percent (not counting taxes) are less than half of the benchmark 15 percent to 20 percent mandated by the 2010 Affordable Care Act (ACA).
In addition to ending 2011 in solid financial shape, BCBSND continues to lead efforts in the state to improve North Dakota's health care system and listen to and work with its members. BCBSND, which is governed by a 13-member board of directors, considers itself to be member-owned and member-driven as it works to improve health care quality, affordability and access. BCBSND has held community forums across the state to connect with its members and address important issues affecting members. The conversation will continue online on our Blue Insight blog and in person.
The company's full 2011 annual report is available here.
BCBSND is an independent licensee of the Blue Cross and Blue Shield Association.