BCBS Parent Doubles Profits Since 2009 as Premiums Increase

Health Care Service, parent company of Blue Cross & Blue Shield of Illinois, had a profit of $1.1 billion last year, approximately double its 2009 profits, according to a Chicago Business report.

The company had a net income of $437 million in the first quarter, nearly two-thirds more than the same period last year at $275 million. Health Care Service also had the highest underwriting profit margin of Blue Cross' 33 nationwide non-publicly owned plans at 6.3 percent, excluding fee-based work.

Meanwhile, health insurance companies are facing criticism for its premium increases. Blue Cross is increasing rates by an estimated 3-10 percent for employer-sponsored group plans this year, which follows an estimated 20 percent increase last fall. However, a new federal law requires health insurers to pay out 80-85 percent of premium revenue.

Read the Chicago Business report on Health Care Service Corp.

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