Financial summary
Against revenues of $25.1 billion (from premiums and other sources), Blue Shield of California spent $22.1 billion (or 88 percent) on medical care in claims paid to healthcare facilities and providers, and the company reported a net income of $130 million for 2023.
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.
Over the last three years, we have invested $77 million in communities through the Blue Shield of California Foundation. The Foundation’s mission is to support lasting and equitable solutions that make California the healthiest state and to end domestic violence.
Blue Shield of California consolidated financials
| ($ in millions) | 2023 | 2022 | 2021 |
|---|---|---|---|
| Premiums, net and other revenue | $25,091 | $24,054 | $22,909 |
| Investment income | $260 | ($189) | $399 |
| Total revenue | $25,351 | $23,864 | $23,308 |
| Health benefits | $22,147 | $22,122 | $20,102 |
| Marketing and selling | $675 | $701 | $698 |
| General and administrative | $2,329 | $2,411 | $2,180 |
| Total operating expenses | $25,151 | $25,234 | $22,980 |
| Net operating income/(loss) before tax | $200 | ($1,369) | $328 |
| Income tax expense | $70 | ($459) | $91 |
| Net income/(loss) (Net income as a % of premiums) |
$130 0.5% |
($910) -3.8% |
$237 1.0% |
| 2% Pledge amount Social impact giving contribution |
n/a $30 |
n/a $30 |
n/a $49 |
| Breakdown of premium dollar spent: | 2023 Health Plan |
|---|---|
| Hospitals | $0.40 |
| Physicians | $0.27 |
| Pharmaceuticals | $0.14 |
| Other medical services | $0.07 |
Total cost of health care Administrative expenses and fees Government mandated taxes and fees Net income |
$0.88 $0.10 $0.01 $0.01 |
| Premium dollar | $1.00 |