How the BCBS Association Spends Revenue (2022)

The Blue Cross Blue Shield Association (BCBSA) is a tax-exempt, non-profit 501 (c) 4 (a social welfare organization) based in Chicago, Illinois that serves as a national association of 36 independent BCBS companies that provide health insurance to more than 115 million people.

They also own and manage the BCBS trademarks and names in more than 170 countries around the world.  For example, BCBS of Florida, Inc. (DBA Florida Blue), Health Options, Inc. (DBA Florida Blue HMO), Florida Combined Life Insurance Company (DBA Florida Combined Life) are independent licensees of BCBSA. Consequently, revenue comes from the members of BCBSA whose revenue comes from insurance premiums. In other words, part of your BCBS health insurance premiums are paid to BCBSA.

In 2022, BCBSA reported total revenue of $756 million that came from seven (7) sources:

• $279 million:  BCBS Federal Employee Program
• $212 million:  BCBS BlueCard (plan for members to obtain coverage while traveling or living away)
• $145 million:  Other Services (no detail provided but appears to from members)
• $ 79 million:  Member Fee Services
• $ 21 million:  BluesNet (telecommunications services)
• $ 21 million:  Other Program Service Revenue
• $  5 million:  Investment Income, Gains, etc

In summary, about 85% of revenue comes from the BCBS Federal Employee Program, other services, and the BCVS BlueCard.

Expenses totaled $678 million (not including $20 million in depreciation) with expenses categorized as follows:

• $288 million (38% of revenue):  Fees for Services (primarily “other” described as “consulting fees”)
• $252 million (33% of revenue):  Compensation
• $107 million (14% of revenue):  Office-Related Expenses
• $ 15 million (2% of revenue):  Advertising and Promotion
• $  8  million (1% of revenue):  Travel and Conferences
• $  8 million (1% of revenue):  Other Expenses (i.e. sponsorships, books, periodicals, etc)

Using the above information, every $100 in revenue was spent as follows:

$100:  Revenue

-$ 38:  Fees for Services

-$ 33:  Compensation

-$ 14:  Office-Related Expenses

-$  2:  Advertising and Promotion

-$  1:  Travel and Conferences

-$  1:  Other Expenses 

-$ 89:  Total Expenses

 $  11:  Revenue Remaining:  To General Fund

As illustrated above, 85% of revenue was spent on outside fees (primarily consultants), compensation for employees, and office-related expenses.  $11 out of every $100 was allocated to the general fund which had $280 million at year-end.

To read the IRS Form 990 (2022), click here.