Nation's Blues plans were more profitable in 2001

Yet profits in the HMO industry overall decreased almost 7%.

By Julie A. Jacob, AMNews staff. Sept. 23/30, 2002.

Profits at the 43 Blue Cross Blue Shield companies nationwide jumped 40% in 2001, even though HMO profits dropped as a whole.

The Blues plans earned an overall profit of $2.9 billion last year, up from $2 billion in 2000, according to Weiss Ratings Inc., an independent ratings agency in Palm Beach Gardens, Fla.

Melissa Gannon, Weiss's vice president, said the strong financial performance of the Blues was attributable to premium increases and the companies' diversity of products. "There's definitely a broader range of products in Blues plans," she said. "They are taking advantage of the consumers' desire to have more choice."

Ninety percent of plans earned profits last year, but five -- Blue Cross Blue Shield of Kansas, Blue Cross and Blue Shield of Minnesota, Blue Cross and Blue Shield of Kansas City, Regence Blue Cross Blue Shield of Oregon and Blue Cross & Blue Shield United of Wisconsin -- lost money.

Overall, the health insurance industry, including both Blues and non-Blues companies, reported aggregate profits of $4.1 billion, an increase of 25% over the industry's 2000 aggregate profits of $3.3 billion. But profits for the country's 573 HMOs, both those owned by Blues plans and other insurers, dropped 6.8%.

HMOs in Texas lost the most money, $477 million, and HMOs in Kansas lost the second largest amount, $53 million. HMOs in New York and California reported the largest aggregate profits of $702 million and $611 million. [...]