About Health Care Service Corporation, A Mutual Legal Reserve Company

Founded in 1936, Health Care Service Corporation (HCSC) is a licensee of the Blue Cross and Blue Shield Association. The mutually owned company consists of five regional Blue health plans including Blue Cross and Blue Shield of Illinois, Blue Cross and Blue Shield of Texas, and Blue Cross and Blue Shield of Oklahoma. Other markets include New Mexico and Montana. HCSC provides group and individual health plans -- including HMO, PPO, point of care, high-deductable, traditional indemnity, and supplemental Medicare -- to some 15 million members, primarily in Illinois and Texas. Through subsidiaries, it sells dental, life, and disability insurance and provides employee benefits solutions to multinational companies.

Operations

Complementing its core product offerings, HCSC also provides life insurance coverage through subsidiaries under the Dearborn National brand (including Dearborn National Life Insurance. HCSC also underwrites and administers certain Medicare and Medicaid business through subsidiary HCSC Insurance Services Company. HCSC offers dental benefits through its Dental Network of America unit.

Additional offerings include pharmacy benefit management services through its minority stake in Prime Therapeutics and health care IT services through several holdings. Its Medecision subsidiary provides health care management software and data analytics services to doctors and managed care companies, and its partially owned Availity subsidiary provides business and clinical health information solutions and e-health information services that support real-time and batch electronic data interchange.

Geographic Reach

HCSC operates in Illinois, Montana, New Mexico, Oklahoma, and Texas. It has more than 60 local offices, including two Tier IV data centers.

Financial Performance

Financially, HCSC has a strong capital base (approximately $9.5 billion) that enables it to withstand volatility in short-term earnings and provide for any potential acquisitions. As a mutual company, HCSC operates from a conservative perspective, taking a long view in managing its financial position rather than focusing on near-term profits. The company's total operating revenue stands at some $34.5 billion.

Strategy

HCSC expanded its operations over the years mainly through strategic acquisitions of independent BCBS companies, allowing it to benefit from economies of scale. The company also leverages its brand and enhances its product offerings as a way to keep a competitive edge and balance its membership and earnings growth. Its core business targets include group, retail, and government clients.

Another element of its strategy is to make infrastructure improvements, focusing on better information technology as a means to improve health care costs. (This is an area of focus for many health insurers and providers as economic and health reform pressures increase.) HCSC is also utilizing technology to increase customer engagement.

After having reduced expenses and managing medical costs, HCSC is now investing heavily in the development of affordable health coverage. It has launched such initiatives as employee wellness programs and collaborative care to improve patient outcomes at lower costs.

In 2018 the company sold subsidiary Academic HealthPlans to that firm's founder and CEO. HCSC had acquired the company in 2012 and spent six years building up its student health insurance operations -- again, using its size to deliver strategic and financial strength.

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Health Care Service Corporation, A Mutual Legal Reserve Company

300 E Randolph St
Chicago, IL 60601-5014
Phone: 1 (312) 653-6000

Stats

  • Employer Type: Private Mutual Company
  • President and CEO: Paula Steiner
  • SVP and Enterprise Chief Medical Officer: Stephen Ondra
  • President and CEO: Paula Steiner
  • Employees: 14,264

Major Office Locations

  • Chicago, IL

Other Locations

  • Concord, CA
  • Woodland Hills, CA
  • Denver, CO
  • Atlanta, GA
  • Danville, IL
  • Downers Grove, IL
  • Lombard, IL
  • Quincy, IL
  • Rockford, IL
  • Springfield, IL
  • Metairie, LA
  • Northville, MI
  • Southfield, MI
  • Ellisville, MO
  • Albuquerque, NM
  • Roswell, NM
  • Las Vegas, NV
  • Rochester, NY
  • Oklahoma City, OK
  • Tulsa, OK
  • Pittsburgh, PA
  • Bartlett, TN
  • Abilene, TX
  • Amarillo, TX
  • Austin, TX
  • Corpus Christi, TX
  • Dallas, TX
  • Houston, TX
  • Lubbock, TX
  • Marshall, TX
  • Mckinney, TX
  • Plano, TX
  • Richardson, TX
  • San Angelo, TX
  • San Antonio, TX
  • Wichita Falls, TX
  • Henrico, VA
  • Lake Forest Park, WA
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