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Insurance CEO Says Prevention, Collaboration Are Key To Controlling Costs–The KHN Interview
Kaiser Health News

Nonprofit Blue Shield of California made a big splash in June when it announced a cap on profit margins: any profits above 2 percent of revenue would be returned to policyholders. The company won praise from some and criticism from others who said the cap was a meaningless gesture given the company’s big reserves: $3.6 billion or 66 percent of total assets. In fact, Blue Shield is well positioned to move forward, with sufficient cash to make acquisitions if necessary, says CEO Bruce Bodaken.