While it struggles to rejoin the Medicare market, Blue Cross and Blue Shield of Massachusetts has clawed back into the black after posting large losses a year ago.
Last week it posted net income of $8.6 million for the second quarter ended June 30, compared with a net loss of $34.5 million in the year-ago quarter. Revenues inched up 2% to $534 million.
The Boston-based company also posted operating income for the quarter of $15.2 million. The difference in operating and net income included taxes as well as restructuring charges in connection with a series of strategic initiatives intended to return the company to profitability.
Medical costs declined 3.2% and administrative costs were reduced by 11.7%, compared with the same period in 1996, said William Van Faasen, the company's president and chief executive officer. Second-quarter results also were powered by HMO Blue, a managed-care plan that earned net income of $22 million.
For the six months, the Blues lost $8.6 million, compared with a net loss of $53.5 million in the year-ago period. Revenues were up 1% to $1.05 billion.