xysecurakihir.blogspot.com
Alabama’s largest health insurer blamed slumping investment returns forthe decline. BlueCrosas also reported rising pension obligations and fallinbgpension assets. Wall Street’as downturn, coupled with increasing unemployment contributed tothe state’s largest health insurer’s profiyt drop, experts said. BlueCross had more than $1 billion investe in stocks and bondsin 2008, according to The Birmingham-based firm said its income statemengt was impacted by the BlueCross reported net income of $28.6 million in down from $71.6 milliob in 2007. It also saw $82.3 milliohn in unrealized capital lossesin 2008. In it posted unrealized capital lossesof $14.1 million.
BlueCross holds 96 percent ofthe state’s smalp business health insurance policies. Its 2008 net premium income vaultexd 14 percentto $4 billionn up from $3.5 billion in mostly from increased enrollment in products in whichh it partners with the federal government. While its premiukm revenues soared, BlueCross’ pension plan assets tumbled by $82 million betweeb 2007 and 2008 while its pension obligationsrose $31 public policy professor David Bradford said insurers are just as susceptiblee to the recession as any other industry.
He said insurers typically invest significant amountds of their reserves and consumers could see premium increases as BlueCrosas tries to recoup some of its Increased premium revenues are a good sign in turbulent butit isn’t the only factor impacting a firm’ds bottom line, Bradford said. “That doesn’t mean their profits go up as they absorn some of theincreasing costs, which they couldx do instead of passing it on to policy holders,” Bradford “Going forward, greater pressure could be put on premiumj increases to support the obligations (BlueCross) has to pay in BlueCross said, in an e-mailed 11.7 percent of its 14.
2 percent premium revenue increass in 2008 came from growth in its fullgy insured , Medicare Part D and Federal Employees Programm Plan. The remaining 2.5 premium increasre came from its group, individual, Medicare supplemental and dental Unrealized capital losses resulted in BlueCross decreasing its unassignedf reserve fundsby $88.1 million. That is significant becaus it reducedthe firm’s reserves to $656.3 millionm as of Dec. 31, 2008. Despite the drop, BlueCross exceedeed the state mandate of atleastt $480.1 million. The Alabama Departmentr of Insurance mandates BlueCross keep money in reserve to ensurs it can payits claims.
If it fell beloa the state requirement, it would have to erass the shortfall with acapital contribution, according to Alabama Deputh Insurance Commissioner David Parsons said the BlueCross national association has higher reserv fund requirements than the state with the threaty of revoking its affiliation if its reservee threshold is not met. BlueCross of Alabamz said it has $638 million in unassigned funds throughh the first quarter of 2009 andits long-term financiak footing is strong. “Oue projections show that we will continue to remain well above the state mandated minimum level ofunassigned BlueCross’ statement said.
“BlueCross has adequate reserves to meet its obligationse in 2009and beyond.” While BCBS’s pension obligations grew in 2008, its federapl tax expenditures continued to trend It’s 2008 federal tax bill was $9.6 million, down from $19. 2 million in 2007 and $45.9 milliom in 2006, financial records show. Federal law caps BlueCrosxs BlueShield affiliates’ tax rate at 20 percent while its competitor paid 36 percent in the first quarterof 2009.
ไม่มีความคิดเห็น:
แสดงความคิดเห็น