Excellus reports 2016 net income of 1.7 percent
Wednesday, March 1, 2017
Source: Rochester Business Journal
Excellus BlueCross BlueShield reported a net income of 1.7 percent on $6 billion in premium revenue in 2016—up from 1.0 percent in 2015, officials announced Wednesday.
For the second consecutive year, the health plan had a $63 million reduction in administrative expenses, which led to a net income of $99.5 million.
“It’s critical for our plan to achieve a margin so that our business can be financially healthy for the security of our members,” said Christopher Booth, CEO of Excellus BlueCross BlueShield in a statement.
Last year’s net income aligns with Excellus BlueCross BlueShield’s stated goals of earning on average 1.5 percent annual net income, according to the organization.
Excellus BlueCross BlueShield paid over $5.1 billion in medical benefits on behalf of its insured members in 2016. The health plan paid roughly $1.3 billion in drug benefits, according to the health plan.
The top three categories of claims payments were services related to cancer treatments totaling $323 million, joint disorders at $193 million, and preventive care services at $185 million.
Medical benefit payments were about 87 percent of premium revenue—excluding the $104.8 million the federal government imposed through the Affordable Care Act’s Health Insurer Tax, according to the health plan. Excellus BCBS paid at total of $506 million in state and federal taxes in 2016.
Excellus’ health plan reserves amount to $1.2 billion or $1,009 per insured member while other nonprofit health plans in Upstate New York reported an average of $1,193 in reserves per member as of Sept. 30, 2016.
The top three officers of Excellus in 2016 were compensated at the following rates:
- Christopher Booth, CEO: $2,095,428;
- Dorothy Coleman, chief financial officer: $1,085,109; and
- Stephen Sloan, chief administrative officer and general counsel: $854,609.
The Lifetime Healthcare Companies is the parent company of Excellus BCBS. The corporation employs some 5,500 people in Upstate New York.