BCBSIL providing COVID-related premium credits
Blue Cross of Illinois’ parent is providing premium credits worth roughly $240 million to fully insured employer customers.
Chicago-based Health Care Service Corp. is among health insurers that have benefited from a COVID-fueled decline in nonemergency medical care during the pandemic. The financial relief for customers comes several months after rivals, such as Anthem and UnitedHealth Group, pledged to give customers—and doctors in some cases—a share of the savings through premium credits and other discounts.
HCSC, which also owns Blue Cross & Blue Shield plans in Texas, Montana, Oklahoma and New Mexico, raked in $2.6 billion in net income in the first half of the year, up 14.5 percent from the same period in 2019. Meanwhile, revenue rose 8.5 percent to $21.3 billion. The decline in medical claims during the COVID-19 crisis offset an increase in benefits and administrative expenses driven by growth in Medicaid and group membership, the insurer told Modern Healthcare last month.
In addition to $240 million in premium credits, HCSC has adjusted 2021 individual and group rates to deliver more than $305 million in savings, the company said in a statement today. Including waiving cost sharing for telehealth services, as well as COVID-19 testing and treatment, it has provided more than $930 million in financial relief during the pandemic, the statement says.