Health Care Service Corporation
Health Care Service Corporation (HCSC), a Mutual Legal Reserve Company, is the country’s largest customer-owned health insurer and fifth largest health insurer overall. HCSC operates through Blue Cross and Blue Shield Plans in Illinois, Montana, New Mexico, Oklahoma, and Texas and is an independent licensee of the Blue Cross Blue Shield Association. Affiliates and subsidiaries, such as Dearborn Group, Innovista, Medecision and Prime Therapeutics provide comprehensive care through life, disability and dental coverage. The company, founded in 1936, serves more than 16 million members across its five states and employs more than 24,000 people in over 60 local offices.
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| Mutual Legal Reserve Company | |
| Industry | Managed health care |
| Founded | 1936 |
| Headquarters | Blue Cross Blue Shield Tower Chicago, Illinois, US |
Key people | Milton Carroll, Chairman; Maurice Smith, President and CEO of HCSC |
| Products | Health plans; group, disability, life insurance |
Number of employees | 24,000+ |
| Website | www |
As a non-investor owned mutual company, HCSC is able to provide strong leadership and maintain a local presence while maximizing the efficiencies and effectiveness of a combined organization. For nearly 90 years, HCSC has been there for its members through all stages of life, in every zip code across all 50 states, the District of Columbia and Puerto Rico.
Subsidiaries and Affiliates
Enterprise subsidiaries and joint ventures are essential contributors to HCSC’s overall value. The Enterprise partners with them to identify strategic and operational synergies as well as implement integrated solutions that achieve business goals. A few affiliates are:
- HCSC Insurance Services Company (HISC), a wholly owned subsidiary, offers stand alone Medicare Part D and Medicare Advantage and Part D (MAPD) under contracts with the Centers for Medicare and Medicaid Services (CMS), Medicaid under a contract with the State of New Mexico Human Services Department, and stop loss products with various groups.
- MEDecision, a wholly owned subsidiary, provides health information technology for case, disease and utilization management. The technology allows for the seamless and secure flow of clinical data among health care stakeholders such as physicians, hospitals and payers.
- HCSC Ventures, Inc. (HCSCV), a wholly owned investment subsidiary founded in 2015. HCSCV invests in opportunities within or adjacent to HCSC’s core business of health care services and health care information technology to maximize strategic value to members while introducing innovative products and services to the marketplace.
- Prime Therapeutics, in which HCSC has a 39.94 percent equity interest, allows for enhanced Pharmacy Benefit Management program oversight and transparency. This in turn enables HCSC to construct pharmacy benefits and clinical programs that are closely aligned to the needs and preferences of its varied customers. Prime also assists in drug pipeline surveillance and integrated medical benefit drug cost management.
- Availity, in which HCSC has a 21.65 percent equity interest, is one of the nation’s largest electronic data interchange clearing houses and one of the most advanced Internet-based e-health information exchanges in the country.
Community Investments
HCSC serves as an ally to its communities, providing security, peace of mind and being there during some of the most challenging periods of peoples’ lives. The company is able to do this because of their employees’ commitment and passion.
In 2019, HCSC employees volunteered more than 175,500 hours in its communities benefitting more than 3,200 organizations, including supporting local food banks and mentoring children. Employees donated nearly $629,000 through HCSC’s annual giving campaigns, including more than $151,000 to its employee giving fund, which provides short-term assistance to employees experiencing severe financial hardship.
HCSC also partnered with Feeding America to support 26 food banks in 2019 to eliminate food insecurity and remove barriers to adequate nutrition. Through the collaboration, nearly 5 million meals were distributed across HCSC’s five states, including 2 million pounds of incremental dairy, produce and protein.
HCSC’s 2019 estimated economic impact, including wages, taxes, benefits, real estate spend and charitable contributions, throughout its five state plans:
- Illinois: $1.4 billion
- Montana: $68 million
- New Mexico: $275 million
- Oklahoma: $236 million
- Texas: $1.2 billion
Members
HCSC is the country’s largest customer-owned health insurer and fifth largest health insurer overall, with nearly 16 million members across its five states.
- Illinois: More than 8.5 million
- Montana: More than 220,000
- New Mexico: More than 550,000
- Oklahoma: More than 830,000
- Texas: More than 5.7 million
Key Financial Metrics
Financial strength and discipline are central to HCSC’s short-term and long-term goals, striving to balance reasonable current income, membership growth and capital preservation.
In 2019, HCSC’s total statutory revenue was $38.6 billion. The company also received the following financial strength ratings:
- Standard and Poor’s: AA- (excellent)
- A.M. Best Company: A (excellent)
- Moody’s Investors Service: A1 (good)