Blue Cross Blue Shield Insurance Company Review

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The Blue Cross Blue Shield Association (BCBSA) is one of the most recognized names in health insurance, both in the United States and around the world. Blue Cross Blue Shield has a presence in over 170 countries. The U.S. federation consists of 36 separate health insurance organizations located throughout the United States. More than 106 million Americans can claim to be insured by Blue Cross Blue Shield through the membership of all locations combined.

Company Background

Blue Cross Blue Shield’s history dates back to 1929 when Justin Ford Kimball first started a health insurance company for teachers. It was called Blue Cross. The Blue Shield was originally an insurance plan for employers of mining camps in the Pacific Northwest. These two companies would merge, and in 1982 the official name of the association became Blue Cross Blue Shield.

The company’s headquarters is in Chicago, Illinois. The president and CEO is Scott Serota, though he plans to retire by the end of 2020. In 2014, Blue Cross Blue Shield reported annual revenue of over $450 million. Through the combined efforts of all 36 U.S. companies, the Blue Cross Blue Shield Association has health insurance products available in all 50 states, the District of Columbia, and Puerto Rico.

Blue Cross Blue Shield is the provider for the Federal Employee Health Benefits Plan. The Federal Employee Program is the single largest health plan group in the world. Blue Cross Blue Shield is also a Medicare contractor for the federal government and processes more than 190 million claims from hospitals each year. There are several single-state association members, as well as the multi-state groups of WellPoint, CareFirst, The Regence Group, and Health Care Service Corporation.

Financial Strength and Customer Satisfaction

Because the Blue Cross Blue Shield Association consists of 36 separate insurance companies, there is no one financial strength rating given by a financial rating organization. However, A.M. Best has rated the majority of Blue Cross Blue Shield companies with an “A+” rating.

With 36 different companies, customer satisfaction ratings will vary based on the individual company you are using. Insure.com has a customer satisfaction survey for the different locations varying from 60% to 80% customer satisfaction rating. The Better Business Bureau has listings for each specific Blue Cross Blue Shield location.

Health Insurance Options

There are many options for your health insurance needs through a Blue Cross Blue Shield plan, no matter your family situation or budget. Here are some of the most popular plans along with their perks.

Flexible Spending Account (FSA) plans are great for families with a limited budget who still need to buy a health insurance policy. The FSA is an account where you can save money tax-free to apply to your health insurance deductible or other health insurance-related expenses. You can have your money deducted directly from your paycheck if you choose. Blue Cross Blue Shield has its own bank which administers this plan. It is the Blue Healthcare Bank. The bank assists members with deposits, withdrawals, and any other questions or assistance needed.

The Health Savings Account (HSA) is similar to the FSA, but money can only be used for medically qualifying expenses. Many people use these accounts to save up money to apply toward a high-deductible policy. The advantage is you can still save money toward a deductible and also enjoy the low premium cost of a high-deductible health insurance policy. HSA plans are tax-deductible.

Health Reimbursement Arrangements (HRAs) are a plan for employers who may not be able to afford to provide full health benefits to employees but still want to offer some type of health benefit. A pre-determined amount of money will be disbursed to employees for special medical expenses for them or their family including prescriptions, co-payments, or other types of medical expenses.

A Health Maintenance Organization (HMO) plan allows comprehensive medical coverage at low costs by having members use only providers inside the health maintenance organization. The savings by using an HMO plan can be quite significant. The Preferred Provider Organization (PPO) plan is similar, but it offers a little more flexibility. With a PPO, you may go out-of-network for service, although less of these expenses will be covered when you do.

Member Services

Blue Cross Blue Shield offers many helpful member services for its policyholders. From the website, you can get your questions answered, find the cost of a medical procedure, review your plan’s details, make changes to your coverage, file a claim, check the status of a claim, review your balance, get a replacement member ID card, and access all your benefits and services. You can also find your local Blue Cross Blue Shield company by entering the first three characters from your member ID card. If you don’t have your membership card available, you can also search for a local BCBS company by entering your state or zip code.

Pros & Cons

A benefit to Blue Cross Blue Shield is that the majority of healthcare providers and doctors will accept the insurance. That makes it easy to find a convenient place to seek treatment. BCBS also comes with the financial strength and reliability of being a well-established company with decades of proven experience. The size of the company benefits customers through its multiple healthcare and HSA plan options.

The size of the company can also be a drawback, especially since it is broken into regional companies that, in many ways, function separately. That can make it difficult to find specific information on the BCBS website. Customers must instead track down their regional company, then seek information from that organization. The size of the company can also create issues with customer service. It can be difficult to track down the correct people who can help you with a given problem.