February 02, 2010

BCBSLA receives 13th consecutive "A" rating from Standard and Poor's


National rating service Standard & Poor's has given Blue Cross and Blue Shield of Louisiana (BCBSLA) its 13th consecutive "A" rating for financial strength, citing the company's strong competitive position in the state's health insurance market, very strong capitalization, very strong liquidity supported by high-quality investments and return on revenue that is consistent with what it expects from an "A" rated not-for-profit company.

"We are delighted to be recognized once again for our financial strength, which allows us to offer stability to our current and future customers," said Peggy Scott, Blue Cross' Executive Vice President and COO.

Standard & Poor's is the world's foremost provider of benchmarks for measuring corporate financial health.

The Standard & Poor's report called BCBSLA's very strong capital and liquidity key strengths contributing to the company's "A" rating. The insurer's risk-based capital (RBC) ratio - commonly referred to as reserves - are "consistent with historical levels" and "sufficiently strong to withstand moderate shocks without affecting the rating," the S&P report states.

In addition, the rating agency reports, "BCBSLA's competitive position is strong and ... is built upon key strengths such as its large market share, high brand awareness, broad provider networks with good discounts, local market expertise and service, and competitive product offerings."

"The company offers a variety of fully insured and self-funded traditional indemnity and managed-care products to all major segments of the market including individual, small group (2-19), middle market (20-99), large group (100 plus), FEP, and national accounts," the report continues. "It also offers various products in the senior market segment (Medicare Part D and Medicare Supplemental) as well as in the employee benefits market segment (dental, life, and disability insurance)."

For a copy of the 2009 Standard & Poor's report in PDF format, please e-mail Blue Cross Corporate Communications.