Blue Cross Rates Another “A” From Standard & Poor’s
March 28, 2013
BATON ROUGE – For the 16th consecutive year, Blue Cross and Blue Shield of Louisiana has been given an “A” financial strength rating by national rating service Standard & Poor’s (S&P), the world’s foremost provider of benchmarks for measuring corporate financial health.
The Blue Cross management team’s strategic plan, which is focused on healthcare reform implementation, was cited as a major contributor to the company’s continued strength and stability. While healthcare reform will present the company with “notable challenges,” the 2012 report states, “building toward 2014, it will focus on developing new products for the exchanges, realigning internal cost structures and distribution models, improving care and quality-related collaboration with hospitals and providers and enhancing its retail and consumer-facing capabilities.”
As in years past, other major ratings factors were Blue Cross’ strong competitive position in the Louisiana health insurance market, very strong capitalization and liquidity backed by high-quality investments, and a stable return on revenue that reflects its solid market position.
“The efforts of nearly 2,000 employees go into guaranteeing that more than a million of our fellow Louisianians have the strength and security that’s commended in the S&P report,” said Blue Cross President and CEO Mike Reitz. “It serves as validation of all we do, from assuring access to the highest quality healthcare at the best possible price to delivering exceptional customer service.”
S&P noted that Blue Cross saw favorable membership growth in full-year 2011 as well as the first three quarters of 2012 in almost all major market segments, including individuals, middle market, large groups, federal employees and national accounts. In addition, the report pointed out Blue Cross’ strong retention rates: the company reported a 98% group renewal rate in 2011—the highest among all 38 independent Plans in the Blue Cross and Blue Shield Association.
For a copy of the 2012 Standard & Poor’s report in PDF format, please email Blue Cross Corporate Communications.
About Blue Cross and Blue Shield of Louisiana
Founded in New Orleans in 1934, Blue Cross and Blue Shield of Louisiana is the oldest and largest Louisiana-based health insurance company. Blue Cross is a private, fully taxed mutual company, owned by policyholders—not shareholders—and governed by a local Board of Directors. It is an independent licensee of the Blue Cross and Blue Shield Association. The company and its subsidiaries provide group and individual health insurance plans, life and disability insurance, group voluntary products and administrative services to more than one out of every four Louisiana residents. With headquarters in Baton Rouge and eight district offices, Blue Cross and Blue Shield of Louisiana employs nearly 2,000 Louisianians who are committed to improving the lives of its customers by providing them with health guidance and affordable access to quality care. Learn more on the company’s website at www.bcbsla.com or visit our social media hub to connect with us via Facebook, Twitter and more.
The Blue Cross and Blue Shield Association is a national federation of 36 independent, community-based and locally-operated Blue Cross and Blue Shield companies that collectively provide healthcare coverage for more than 106 million members – one-in-three Americans. For more information on the Blue Cross and Blue Shield Association and its member companies, please visit bcbs.com. We encourage you to connect with us on Facebook, check out our videos on YouTube, follow us on Twitter and check out The BCBS Blog, for up-to-date information about BCBSA.