Financial Summary

Blue Shield of California reported a net income of $115 million in 2015, down from $162 million in 2014. Of the company's 2015 revenue from premiums, 83.4% was spent on medical expenses.

In 2015, the company contributed $35 million to Blue Shield of California Foundation and has given more than $360 million over the last 10 years.

Our 2% Pledge: Four years ago, Blue Shield became the first health plan in the nation to voluntarily limit net income to 2% of revenue. Any year in which Blue Shield earns more than 2%, the company will return the difference to its customers and the community, with approval by the board of directors. Since 2011, the company has returned $560 million to customers and the community. Blue Shield’s profit margin was below 2% in 2014 and 2015 and, as a result, we did not return any funds as part of our pledge commitment.

For information about Blue Shield’s 2015 executive compensation, click here


Blue Shield of California Consolidated Financials*

Membership in thousands ($ in millions) 2015 2014 2013 2012
Ending membership 4,080 3,481 2,944 2,891
Premiums,net $14,836 $13,349 $10,824 $10,240
Less: medical expenses 12,369 10,948 9,194 8,643
Gross Profit
Medical loss ratio
$2,466
83.4%
$2,401
82.0%**
$1,630
84.9%
$1,597
84.4%
Marketing and selling 595 570 543 515
ACA taxes, premium taxes and other fees 417 357 62 47
General and administrative 1,341 1,191 974 960
Total admin expenses $2,352 $2,118 $1,579 $1,522
Pre-tax income (loss) from health operations 114 283 51 75
Investment income 229 271 198 224
Income before taxes $343 $544 $249 $299
Income taxes 228 392*** 78 95
Net Income
Profit margin (net income as a % of premiums)
$115
0.8%
$162
1.2%
$171
1.6%
$204
2.0%
2% Pledge amount $0 $0 $0 $0
Foundation contribution (millions) $35 $35 $35 $40

*Additional details on Blue Shield’s financial performance can be found on the California Department of Managed Health Care website by searching for “California Physicians’ Service.”

**2014 medical loss ratio reflects the impact of Affordable Care Act (ACA) taxes on premiums; we estimate this to account for a reduction of 2 percentage points from that reported above.

***Increase in 2014 income tax expense reflects improved operational performance, the non-deductibility of a new ACA tax and a protested assessment from the California Franchise Tax Board.