Financials
Financial summary
Blue Shield of California reported a net income of $237 million in 2021, against revenues from premiums and other sources of more than $22.9 billion. Of the company's total revenue, $20 billion, or 87.7 percent, was spent on medical care in claims paid to healthcare facilities and providers.
Our 2% Pledge: We are the only major health plan to voluntarily cap our income at two percent of revenue, returning the difference back to our customers and the communities we serve. Since establishing this pledge in 2011, Blue Shield has returned $817 million to our members and California communities, with approval from our Board of Directors.
In 2021, Blue Shield of California made a $40-million contribution to Blue Shield of California Foundation, whose mission is to build lasting and equitable solutions that make California the healthiest state and to end domestic violence.
Blue Shield of California consolidated financials
| ($ in millions) | 2022 | 2021 | 2020 |
|---|---|---|---|
| Premiums, net and other revenue | $24,054 | $22,909 | $21,086 |
| Investment income | ($189) | $399 | $366 |
| Total revenue | $23,864 | $23,308 | $21,171 |
| Health benefits | $22,122 | $20,102 | $17,985 |
| Marketing and selling | $701 | $698 | $651 |
| General and administrative | $2,411 | $2,180 | $2,447 |
| Total operating expenses | $25,234 | $22,980 | $21,084 |
| Net operating income/(loss) before tax | ($1,369) | $328 | $1,088 |
| Income tax expense | ($459) | $91 | $408 |
| Net income/(loss) (Net income as a % of premiums) |
($910) -3.8% |
$237 1.0% |
$680 3.1% |
| 2% Pledge amount Social impact giving contribution |
n/a $30 |
n/a $49 |
$81 $46 |
| Breakdown of premium dollar spent: | 2022 |
|---|---|
| To hospitals | $0.43 |
| To physicians | $0.29 |
| To pharmaceuticals | $0.14 |
| To other medical services | $0.06 |
| Total cost of health care | $0.92 |
| Administrative expenses and fees | $0.08 |
| Premium dollar | $1.00 |
| (Note: Health plans excludes Altais) | |
