Blues report 54% decline in profits

November 15, 1991

Blue Cross and Blue Shield of Maryland, the state's largest health insurer, reported a profit of $8.86 million during the third quarter, a 54 percent decline compared to the third quarter of last year when the insurer had a gain of $17.9 million. Revenues for the third quarter $337 million.

Blue Cross spokeswoman Marjorie Valin said the drop is because of the onset of a downturn in health insurance writing, which happens every three years. She said the company was "thrilled" that the gains are as high as they are.

Since Blue Cross is a non-profit organization, it does not technically make a profit. But surpluses are important in bolstering the insurer's reserves.

For the first nine months of the year, the insurer had a gain of $21.5 million compared to $34.4 million for the same period a year ago. Revenues in the first nine months were $1 billion.

Blue Cross' health maintenance organization, which are accounted for separately, had a gain of $3.01 million for the third quarter and $3.25 million for the first nine months.

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