Blue Cross and Blue Shield of Alabama’s profits fell 55 percent in 2012, according to the insurer’s income statement.
The company, which is Alabama’s largest health care insurer, posted net income of $114.6 million in 2012. That was down from $256.9 million in the previous year.
In a statement about the figures, Blue Cross officials said the loss was, in part, due to higher loss ratios experienced in 2012.
“While total revenues remained relatively flat during 2012, incurred claims increased increased from $3.5 billion in 2011 to $3.6 billion in 2012,” the statement said. “The combined medical loss for the corporation increased from 86.2 percent in 2011 to 89.3 percent in 2012.”
The statement further said that Blue Cross of Alabama expects positive financial results this year, despite projections of 2013 margins decreasing from 2012.