Blue Shield of California Reports Positive 2004 Performance Thursday May 19, 1:25 pm ET
SAN FRANCISCO, May 19 /PRNewswire/ -- With the release of Blue Shield of California's 2004 annual report today, the company reported a third consecutive year of positive income and membership growth. The company's 2004 performance recently resulted in Standard and Poor's upgrading Blue Shield's financial strength rating from A- to A. AM Best gave the company an excellent rating. For the year that ended December 31, 2004, Blue Shield reported net income of $334 million and operating income of $416 million. The company achieved a net margin of 4.9 percent for 2004 on total revenue of $6.9 billion. Membership grew to 3.3 million Californians as 641,000 individuals joined BlueThursday, November 04, 2004 9:38:15 PMe years, the company's membership has climbed by 1 million, its revenue has increased from $4.6 billion to $6.9 billion, and its operating income has grown by $235 million. At the same time, administrative expense as a percent of revenue declined from 14.3% to 12.2%.
Blue Shield has a strong presence in the public sector market, serving such major accounts as the California Public Employees' Retirement System and the Department of Defense's TRICARE program. Blue Shield manages the California provider network and is a co-owner of TriWest, an Arizona-based company that provides TRICARE health care services to military personnel and their families in the western United States. In 2004, Blue Shield created an exclusive network of 30,000 physicians and 220 hospitals to serve those eligible for TRICARE services in California.
Blue Shield increased sales of dental and vision services through its Ancillary Business Unit in 2004. Dental sales grew by 40% while vision sales increased 150%. The introduction of health savings accounts (HSAs) boosted the sale of compatible high deductible health plans, with 120,000 members currently enrolled.
As a result of the company's strong financial performance, $73 million was reinvested into the business to support the company's growing membership, investments in technology, product innovations and disease and care management programs.
In 2004, Blue Shield also contributed $30 million to the Blue Shield of California Foundation, which supports programs that increase access to health care for the uninsured, combat domestic violence and evaluate new medical technologies.
A copy of the company's annual report is available on its website at www.mylifepath.com.
Founded in 1939, Blue Shield of California is one of the state's leading healthcare companies. Headquartered in San Francisco, the not-for-profit corporation has 3.3 million members, 4,300 employees and more than 20 office locations throughout California. For more information on Blue Shield, visit the company's website at www.mylifepath.com.
CONTACT: Patrice Smith Director of Corporate Communications 415-229-6366 patrice.smith
Elise Anderson Media Relations Manager (310) 568-2866 elise.anderson
---------------------------------------------------- Source: Blue Shield of California