$1 Billion Savings For Members

Kansans like to know that their hard-earned dollars are well spent.

We work hard to ensure that our members get uncommonly high value for their health insurance premiums. In 2005, our cost containment programs saved our members a record $1 billion, essentially cutting the cost of health care in half.

GraphSecuring discounts from contracting providers saved members about $790 million. Additionally, BCBSKS strives to contain costs by encouraging the proper use of health care. These cost containment activities include coordinating benefits with other insurance carriers, enforcing waiting periods, providing case management on selected cases, requiring precertification for some services and conducting utilization reviews. when people receive the level of health care they need, no more or less, it helps keep costs down for everyone.

Another important way BCBSKS saves our members money is by being one of the nation’s most efficiently run insurance companies. While some insurance companies may operate on as much as 30 cents on the dollar, in 2005 Blue Cross and Blue Shield of Kansas operated our business on just 7.7 cents of each premium dollar. In fact, 86.6 cents – the vast majority of each premium dollar – went to pay claims.

Our strong financial standing and cost containment efforts mean better value for our members. For the second year in a row, many of our policyholders are receiving premium increases that are smaller than the industry average. Some policyholders are even seeing premium decreases for their coverage. It is imperative that BCBSKS remains on a path of financial strength in order to maintain long-term value and security for our members.

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