BCBS of North Carolina posts first profit since ACA mandate — 5 takeaways

Blue Cross Blue Shield of North Carolina reported a 2017 net income margin of $0.078 for every dollar of revenue, but its average net income margin from 2013 to 2017 was below target. Here are five takeaways.

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1. Blue Cross NC reported $734 million in net income and $9.4 billion in revenue for 2017.

2. The company’s average net income margin from 2013 to 2017 was 2.2 percent.

3. Blue Cross NC experienced years of losses totaling $485 million since implementing the ACA. Less than 15 percent of its members are ACA customers.

4. Claims and medical expenses totaled $6.6 billion in 2017, up from $5.8 billion in 2016.

5. The company’s financial report attributed steep gains and losses since 2013 to market volatility caused by lack of federal cost sharing reduction payments; the individual mandate repeal; the health status of customers; rising medical costs; and uncertainty surrounding the repeal and replacement of the ACA.

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