BOSTON, May 15, 2018 /PRNewswire/ -- Blue Cross Blue Shield of Massachusetts (Blue Cross), Inc. and Blue Cross Blue Shield of Massachusetts HMO Blue, Inc. today reported a combined after-tax first quarter net income of $57.5 million (2.9% net margin) on revenue of $2.0 billion, which includes the impact of two extraordinary items related to the Affordable Care Act (ACA) insurer fee and federal tax reform. As a result of the ACA fee, the company reported an operating loss of $97.2 million. Under recognized statutory accounting guidelines, the company is required to expense – in the first quarter – the full-year cost of the ACA insurer fee, which resumed this year. The company reported investment income of $12.2 million.
"Our first quarter results are consistent with our expectations," said Andreana Santangelo, Blue Cross' chief financial officer. "They reflect a highly competitive marketplace, reinforcing the need for us to continue to effectively manage both administrative and medical spending while continuing to offer exceptional, affordable health plans to our employer customers and members." Blue Cross uses approximately 90 cents of every premium dollar to pay for health care services for our members.
Blue Cross is the leading private health plan in Massachusetts with 2.8 million members.
About Blue Cross Blue Shield of Massachusetts
Blue Cross Blue Shield of Massachusetts (bluecrossma.com) is a community-focused, tax-paying, not-for-profit health plan headquartered in Boston. We're the trusted health plan for more than 25,000 Massachusetts employers and are committed to working with others in a spirit of shared responsibility to make quality health care affordable. Consistent with our corporate promise to always put our 2.8 million members first, we're rated among the nation's best health plans for member satisfaction and quality. Connect with us on Facebook, Twitter, YouTube, and LinkedIn.
SOURCE Blue Cross Blue Shield of Massachusetts