As a community-focused, not-for-profit health plan, we aim to generate a small margin from our operations that we reinvest in our business, our people, technology, and our reserves.
Unlike most not-for-profit organizations, we pay significant federal, state, and local taxes and assessments. We don’t solicit or receive charitable donations, and we don't benefit from tax-exempt financing.
In 2021, our company paid more than $190 million in federal, state, and local taxes and assessments.
Learn more about the latest Taxes and assessments we paid.
Maintaining financial stability for our members
Our company maintains reserves to help ensure that we can meet our financial obligations, which include paying for the health care needs of our members. These reserves are required by law and the Blue Cross and Blue Shield Association. They provide us with financial stability and the ability to moderate premium increases for our members in times of financial uncertainty.
Learn more about the Importance of reserves
Putting your premiums to work for you
Almost all your premium goes toward medical care. Under state and federal law, health plans are required to spend a significant portion of each premium dollar on the medical care of their members, a measure known as the “Medical Loss Ratio.” Health plans pay rebates to their customers when medical care cost falls short of the ratio.
As the chart below illustrates, for the 10th straight year, Blue Cross exceeded state and federal standards by spending approximately 90 cents of every premium dollar on our members' medical care.
Half of the increase in health care costs in Massachusetts is due to higher prices. Other factors include the growth in demand for services, the cost of using more sophisticated technology, and consumers choosing to go to more expensive treatment centers for care. You can go to ratereview.healthcare.gov if you want further information about BCBSMA rates.