Highmark Blue Cross profits jump; outsources PA jobs to India; abandons adult Basic

Highmark's ledger: Profits jump while the Blues abandon adultBasic
Tuesday, April 05, 2011
Pittsburgh Post-Gazette

The region's leading health insurer, ostensibly a non-profit corporation, had a very good year in 2010. Its revenue of $14.6 billion, a $1 billion increase over 2009, made it the third-largest Pittsburgh-based company, behind U.S. Steel and PNC Financial Services. Net income, or profit, was $462.5 million, a 146 percent jump.

By the end of the year, Highmark had a $3.71 billion surplus, even after providing bonuses to many employees and contributing $175 million to community-related activities including those intended to expand access to health insurance for low-income families and older adults.

On the other side of Highmark's ledger, though, were its decisions to outsource work to India and stop contributing to the state's adultBasic health insurance program for poor, working Pennsylvanians. Highmark and its three sister Blue Cross-Blue Shield companies in Pennsylvania ended their six-year commitment when it expired at the end of 2010, and adultBasic subscribers were cut off on Feb. 28.

The alternative coverage that Highmark offers is more expensive and less expansive. Where adultBasic was $36 a month, the Special Care plan costs $162, plus imposes more restrictions on doctors' visits.


First published on April 5, 2011 at 12:00 am

Read more: http://www.post-gazette.com/pg/11095/1136955-192.stm#ixzz1Ie3tDM00