Profit down, executive salaries up at Blue Cross
CHAPEL HILL, N.C. (WTVD) -- Blue Cross Blue Shield of North Carolina said in its annual financial statement Friday that its overall profits are down while its top executives enjoyed significant raises.
The company blamed increasing medical claims and the cost of implementing Obamacare for the drop in its profit margin between 2011 and 2012.
"2012 was a year of focus on the future and the full implementation of health reform," said Brad Wilson BCBSNC president and CEO in a statement that accompanied the earnings report. "We are making investments today to ensure we can meet North Carolinians' health care needs tomorrow."
BCBSNC said it expanded its number of customers by 140,000 to 3.74 million and spent 87 cents of every dollar collected in premium money on medical care. That's up from 85 cents the year before.
It took in $5.7 billion in revenue for net profit of 57.7 million - or a 1 percent net income ratio - down from 3.2 percent the year before.
Meanwhile, the company's top nine executives enjoyed average pay increases of more than 40 percent. Wilson's total compensation jumped from $1.8 million in 2011 to $2.5 million in 2012.
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