Strong investment returns helped Blue Cross and Blue Shield of Michigan weather a turbulent 2020 with a $120 million operating margin, less than 1% of the company s $30.1 billion in total revenue, insurance officials said Monday during the company s annual financials briefing.
The state s largest health insurer reaped a positive return of $724 million from its conservatively invested portfolio of stocks and bonds, said Paul Mozak, senior vice president of finance and chief risk officer for Blue Cross.
Throughout the pandemic, the company maintained its rating in Best s Rating Report of A with a stable outlook. The complete and audited 2020 financial statement will be released in the company’s annual report in May.
Blue Cross posts lowest operating profits in 4 years amid COVID-19 pandemic
Investment portfolio gains of $724 million stabilized business
Company total margins dropped to 2.1 percent from 2.7 percent in 2019
Blue Cross Blue Shield of Michigan experienced a 52 percent drop in operating profits in 2020, illustrating the challenges the state s largest health insurer faced during the beginning of the COVID-19 pandemic.
The nonprofit mutual health insurer reported $120 million in operating income last year, the lowest amount in four years, compared with $248 million in 2019,
But strong investment income gains of $724 million from company s conservatively invested portfolio of stocks and bonds led to after-tax net income of $646 million on $30.1 billion in revenue, a 2.1 percent total margin. Blue Cross earned $603 million on its portfolio investments in 2019.
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Feb 8, 2021 3:42 PM
Michigan Gov. Gretchen Whitmer at a COVID-19 update press conference on Nov. 19, 2020. Courtesy, State of Michigan
LANSING, MI (WKZO AM/FM) Governor Gretchen Whitmer and the Michigan Department of Insurance and Financial Services (DIFS) announced Monday that the state has secured agreements from nearly all of the stateâs health insurers to extend their waiver of all out-of-pocket costs for COVID-19 testing, vaccinations, and treatments.
These agreements cover more than 92% of the commercial health insurance market in Michigan, according to officials.
âAs we continue working to combat this global pandemic and save lives, the very last thing that Michiganders should have to worry about is whether their health insurance will cover the costs of their care,â Governor Whitmer said in a statement. âIâm pleased that these agreements with health insurers will be exte
Most Michigan health insurers extend agreements to provide COVID-19 testing, treatment for free
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FILE - In this July 24, 2020, file photo, healthcare worker Rahaana Smith instructs passengers how to use a nasal swab, at a drive-thru COVID-19 testing site at the Miami-Dade County Auditorium, in Miami. U.S. health officials have sparked a wave of confusion after posting guidelines that coronavirus testing is not necessary for people who have been in close contact with infected people. (AP Photo/Wilfredo Lee, File)
and last updated 2021-02-08 16:22:07-05
LANSING, Mich. â Gov. Gretchen Whitmer and the Michigan Department of Insurance and Financial Services announced Monday that the state has secured agreements from nearly all of the stateâs health insurers to extend commitments to waive out-of-pocket costs for COVID-19 testing, vaccinations and treatments.