To help our community through this difficult time, we donated to specific COVID-19 relief efforts—including the COVID-19 Response Fund—as well as provided financial support to many nonprofit partners that helped them reallocate funds toward COVID-19 efforts.
In addition to financial support, Your Blue Van delivered supplies for the Rhode Island Coalition for the Homeless. To help protect first responders and our state’s most vulnerable citizens, we donated hand sanitizing products to the State of Rhode Island, City of Providence emergency responders, and nonprofit organizations like Family Service of Rhode Island.
BlueAngel volunteers donated their time to deliver meals to older adults through Meals on Wheels, sew masks for healthcare and direct service professionals, and consult with local nonprofits via Zoom.
Behavioral Health Quality Grants from BCBSRI will help behavioral health practices better anticipate patient needs and close gaps in care. The $1,118,309 in grants, provided over the course of the next two years, will help these practices launch new electronic health record programs and add population data analysts:
When the calls started coming in, we knew we had to help. Small businesses were hit especially hard during the pandemic. Many were faced with cash flow constraints. A BCBSRI team of two people worked with more than 150 businesses, setting up payment plans, extending payment terms, and helping connect them with available resources for their businesses.
With that assistance, businesses could tell their employees that they would not lose their health coverage in the middle of a pandemic.
As providers saw an increasing number of their patients virtually, BCBSRI led the way by expanding access to telehealth and reducing the cost for patients ahead of state requirements. This gave providers a head start in transferring their practices to a virtual environment before COVID-19 restrictions were enacted.
We also provided weekly assistance to practices on how to apply for federal loans through the Paycheck Protection Program.
Our financial performance in 2020 allowed us to create a premium relief program of almost $30 million for medical and dental customers. We also contributed $10 million to our donor-advised fund at the Rhode Island Foundation, used for philanthropic investments like our BlueAngel Community Health grants focused on safe and affordable housing. The after-tax net gain of $42 million was driven by several factors: strong enrollment, a final installment of a federal tax refund, and lower-than-expected medical claims during the first half of the year as members deferred non-COVID-19-related care.
For the fourth consecutive year, we have shown positive financial results, allowing us to contribute $42 million into reserves, money we set aside for the protection of all our members to pay future claims.
In 2020, statutory reserves that we held for the protection of our members totaled $416 million at year end.
In 2020, we recorded $1.70 billion in premiums from members (individuals and employers). We also recorded an $8.8 million gain on investment revenue.
From total revenue, $1.40 billion was used for medical and dental claims for our members. This amount accounted for 82.2% of premium revenue collected. The company spent $232.2 million (including premium taxes) on expenses to support the core operations of our business, or 13.6% of premiums. An additional $74.3 million was spent on other expenses, including $33.6 million on assessments required by the Affordable Care Act. The company also recorded a $36.3 million offset to expenses for the final installment of the Federal Tax Refund.
Overall, total revenue stood at just over $1.71 billion, and expenses exceeded $1.67 billion in 2020, resulting in a net gain of $42.4 million.
This formulation represents unaudited results utilizing Statutory Accounting Principles. The Blue Cross and Blue Shield Association licenses Blue Cross & Blue Shield of Rhode Island to offer certain products and services under the Blue Cross and Blue Shield brand names. Blue Cross & Blue Shield of Rhode Island is an independent organization governed by its own Board of Directors and solely responsible for its own debts and other obligations. Neither the Association nor any other organization using the Blue Cross and Blue Shield brand names acts as a guarantor of Blue Cross & Blue Shield of Rhode Island’s obligations. A copy of Blue Cross & Blue Shield of Rhode Island’s most recent audited financial statements is available on request to: Blue Cross & Blue Shield of Rhode Island, 500 Exchange Street, Providence, RI 02903.