Our sole purpose is to provide our members with peace of mind. By carrying the BlueCross BlueShield of Tennessee card, our members know they are protected from financial hardship if faced with unexpected health care needs.
Our members want and expect us to perform well operationally and financially. They want to be assured we have the financial means to cover health care claims.
So how much do we have in the bank?
The Tennessee Department of Commerce and Insurance requires that we maintain $1 billion in reserves. We have an additional $613 million in available reserves. That sounds like a lot of money, but not when you consider that we cover more than 3 million people and it took 68 years to build it up.
Because we are not owned by investors, we have a unique ability to earn smaller profits – typically 3 percent each year – and a responsibility to maintain healthy reserves. This is especially important because we don’t have access to capital markets and cannot raise funds on an as-needed basis.
Consider this: If we stopped taking in new revenue, here’s how long our reserves would continue paying claims.
Our financial reserves are strong not just because the law requires them to be, but because it’s an important part of our mission to give you peace of mind. When you need us, we’re here for you.