Blue Cross profit rises (triples!)

[BR_Parkway]

http://www.newsobserver.com/126/v-print/story/414119.html

You would expect most companies to celebrate when their fourth-quarter earnings tripled, driving annual profits to their second highest level ever.

But perhaps not when that business is Blue Cross, the state's largest health insurer and a target for consumer advocates seeking more affordable medical coverage. And not when many North Carolinians are struggling to afford another year of double-digit premium increases.

Blue Cross' profits increased to $167.6 million in 2005 and $34.3 million in the fourth quarter. In 2004, the company had $155.9 million in profits for the year and $10.4 million during the quarter.

Blue Cross officials minimized the raw numbers and highlighted decreases in the company's profit margin in comments to the media Friday. The nonprofit company has been trying to reduce its net income for two years after its $196.3 million profit in 2003 caused a public outcry.