Blue Cross and Blue Shield of North Carolina saw its net income drop nearly 30 percent in fiscal year 2019 as medical expenses for its members climbed, the health insurer said March 4.
BCBSNC recorded net income of $492 million from 2019, compared to $684.6 million in the year before. That's a $193 million, or 28.1 percent, year-over-year decline.
BCBSNC blamed the results on "record-high medical expenses" and lower premiums. The insurer had a larger customer base in 2019 — up 2.4 percent compared to 2018 — and continued to face price increases for medical tests, treatment and prescription drugs. BCBSNC's claims expenses hit a record high of $7.3 billion in 2019, up from $6.8 billion a year prior.
At the same time, the insurer reduced premiums by an average 5.5 percent for 2020, marking its second consecutive year of price reductions in the individual market and its first statewide rate reduction.
More articles on payers:
5 things to know about Harmony, the UnitedHealth plan directing members to Optum physicians
Indiana health system CEO: There's 'a lot of ground to make up' in Anthem deal
Cigna to run Houston Methodist's health plan under new agreement