North Dakota's largest health insurer has made a quick turnaround after a year of underwriting losses and lost technology contracts.
Noridian Mutual Insurance Company, the parent of Blue Cross Blue Shield of North Dakota, earned $26 million in net income in 2014, on premium revenues of $1.3 billion. "BCBSND had an operating gain of 2.1 percent," the company's annual report said.
It's a sign that mutual insurer is healthy enough for health reform, said Tim Huckle, who took the CEO job last year following the ouster of Paul von Ebers.
In 2013, BCBSND booked a $72.8 million loss. Much of it was from a technology subsidiary whose 2012 contract to build Maryland's health insurance exchange was severed amid widespread functioning problems and a public disagreement with other vendors. In 2013, BCBSND also took a $25 million underwriting loss, the first since the Great Recession in 2008.
"2013 was a financially challenging year for the company," Huckle said. "However, just one year later, as we closed the books on 2014, we were able to build financial strength to keep our members safe and secure. At the same time, enrollment grew despite the demands of the healthcare reform environment."
Also, "March marked our 75th anniversary," noted Huckle, a native of Valley City, North Dakota, and 30-year-company employee, first as a management specialist, later HR vice president, development and strategy VP and most recently chief operating officer.
"We recognize there will be perpetual bumps in the road. It's during those periods we rely on perseverance and creativity to find solutions that benefit those we serve," Huckle said. "We have done so for 75 years and will continue to do so for years to come."