Health Care Service Corporation

Health Care Service Corporation
Mutual Legal Reserve Company
Industry Managed health care
Founded 1936
Headquarters Blue Cross Blue Shield Tower
Chicago, Illinois, US
Key people
 Paula Steiner, Chairman and CEO, Mr. Eric A. Feldstein Chief Financial Officer and Senior Vice President, Ms. Colleen F. Reitan Executive Vice President and President of Plan Operations.
Products Health plans; group, disability, life insurance
Number of employees
 22,000+
Website www.hcsc.com

Health Care Service Corporation was formerly known as Hospital Service Corporation and changed its name to Health Care Service Corporation in 1975, HCSC is a not-for-profit corporation health insurance company in the United States, The company was founded in 1936 and is based in Chicago, Illinois with a network of offices in the United States. Health Care Service Corporation (HCSC) is the licensee of the Blue Cross and Blue Shield Association for 5 states. It concentrates its operations in Illinois, Montana, New Mexico, Oklahoma, and Texas.

As the 4th largest health insurer in the US overall, it employs more than 22,000 people and serves nearly 15 million members. It offers group life, disability, and dental solutions, and a range of other individual solutions. The company also provides various care management and wellness resources.

Geographical area of operations

As of 2015 HCSC's operations are concentrated in Illinois and Texas, which accounted for 84% of total revenue through the first nine months of 2014, followed by Oklahoma (9% of revenue).[1]

Financial information

As of 2014 HCSC was the country's largest nonpublic health insurer and the fourth-largest health insurer overall, with more than 14 million members.[1]

In 2010 HCSC nearly doubled its income to $1.09 billion, and began "a streak of billion-dollar profits for 4 straight years".[2] Between 2009 and 2013, HCSC's five-year average of return on capital was 10.5%. During 2014 HCSC profits decreased "from medical losses and expenses associated with the company's aggressive addition of members sourced from ACA exchanges". Yet in 2015, Fitch Ratings assessed its financial strength still at 'A+' and gave it an 'A' for likelihood of default and senior unsecured rating. Finch stated that "lack of geographic diversification has historically kept HCSC out of the 'AA' rating category and that HCSC would be downgraded if it were no longer to market itself as a Blues plan.[1]

References

  1. 1 2 3 Fitch Ratings (February 17, 2015). "Fitch Affirms Health Care Service Corporation's Ratings". Reuters. Retrieved 25 May 2015.
  2. ↑ "Blue Cross parent boosts profit in second quarter". Crain's Chicago Business. Crain Communication, Inc. 3 September 2013. Retrieved 18 December 2014.


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