Creating a healthier Arkansas takes planning … commitment … resources … knowledge … insights … skills … and care.
What we do … and why we do it.
For nearly 75 years, Arkansas Blue Cross and Blue Shield has been working alongside other stakeholders in our healthcare delivery and financing system to improve the well-being of the people and communities of our home state. And today, that work continues, with investments and initiatives designed to ensure a better present and future for everyone.
- Our goal is to make Arkansas a healthier place and to give every Arkansan the peace of mind that comes from knowing that we’re there to help them get – and pay for – quality care when they need it.
- Our core foundation is as solid as Arkansas bedrock. Arkansans can count on the strength that comes from our local origins and the dedication we bring to our unwavering state-based focus.
- Our passion for people drives us to find new and better ways to improve the health and lives of our members and the communities where we all live, work and play.
- Our powerful tools enable us to work together with providers to identify, predict and address issues so we can help our members and keep communities healthy.
- Our future-focused outlook means we are built to withstand uncertain times. In the health insurance industry, that requires the ability to meet immediate needs while also seeing beyond them, as we all experienced during the recent COVID-19 pandemic.
Through the years, we’ve seen many evolutions in healthcare and coverage. And we know more changes are on the horizon. We hope you will look to us as a resource for information as we work to give Arkansans access to the best care at the best value and proactively work to meet our state’s unique health challenges.
Arkansas foundation, Arkansas focus
Arkansas Blue Cross was founded in 1948 as a grassroots collaboration when the Arkansas Medical Society, the Arkansas Hospital Association and the Arkansas Farm Bureau Federation came together to stabilize the state’s post- Depression healthcare financing and delivery system.
Today, Arkansas Blue Cross is one of 34 Independent Licensees of the national Blue Cross Blue Shield Association and is the oldest and largest health insurer in Arkansas. Arkansas Blue Cross and its family of affiliated companies employ more than 3,200 Arkansans who live and work throughout the state – in jobs ranging from medical expertise, claims-processing and customer service to case management and information technology. More than 10,000 healthcare professionals participate in our provider networks.
Presence throughout Arkansas
We recognize that each part of our state is as unique as its diverse population. That’s why we’ve maintained sales and service centers throughout the state. We currently have a local presence in Fayetteville, Fort Smith, Hot Springs, Little Rock, Jonesboro, Pine Bluff, Rogers, Springdale and Texarkana areas. These regional centers give all Arkansans access to convenient, timely expertise and service from folks close to home who understand their needs.
Plans for all Arkansans
Arkansas Blue Cross offers two basic health plan categories for folks who live, work and play in Arkansas:
- Consumer health plans (for individuals) – We have a wide range of health and dental insurance policies for individuals and families (including offerings on the Health Insurance Exchange) as well as Medicare Advantage and Medicare supplement policies for seniors.
- Employer-sponsored health plans – Employers may select from fully insured or self-insured versions of group health and dental plans to offer to their employees.
Affordability for Arkansans
We believe our primary role is to be a good steward of the premium dollars our members pay us. We work with doctors, hospitals and others in the medical community to address the continual rise in healthcare costs. When we share information and ideas, it leads to innovative care and payment models that focus on keeping people healthy, coordinating services among providers and producing the best care outcomes for each person.
Owned by Arkansans (our policyholders)
Arkansas Blue Cross is a not-for-profit, mutual insurance company. That means we are owned by our policyholders, not by stockholders. All our revenue goes to process and pay current or future claims. Of every premium dollar we collect, we pay out nearly 88 cents in benefits for our customers. The remaining 12 cents goes toward operating costs and reserve funds. Health insurance carriers are required to maintain reserve funds to safeguard their financial strength and to pay claims when costs run higher than anticipated – or during emergencies or disasters such as the COVID-19 pandemic.
The Affordable Care Act established a measurement called the medical loss ratio (MLR), which legally establishes the percentage of each premium dollar (80 percent for individual and small-)group plans; 85 percent for large-group plans) that an insurer must spend directly on the payment of healthcare benefits. If an insurance company falls short of that threshold, it must send refunds to its customers. Since the passage of the ACA, our performance has greatly exceeded that federal requirement.
Policyholders are our top priority but not our only obligation. Arkansas Blue Cross has paid more than $740 million in state and premium taxes over the past dozen years, and we work continuously to satisfy new and changing regulations from the state and federal governments.
Financial reserves (to protect Arkansans)
Because we are a mutual insurance company, we cannot sell stock. That means we have limited access to capital to fund ongoing infrastructure needs or unexpected events. During nearly 75 years of business operations and investments, we have worked to build reserves to be used in times of crisis, when cash flow could be disrupted. Though the amount of those reserves may seem vast, it’s important to note we insure the overwhelming majority of Arkansans. Accordingly, our reserve dollars amounted to only about $1,702 per covered member at the end of 2021. According to recent studies, the average hospital cost per day is $2,873. Given the high cost of healthcare, it is evident that if a catastrophe were to disrupt our revenue stream for an extended period, it would not take long to exhaust these reserves.
Commitment to Arkansas’ healthcare providers
Arkansas Blue Cross recognizes how important it is to share claims information with healthcare providers. This helps them serve their patients better, improve efficiency and coordinate services with each other.
Commitment to Arkansas’ people
Arkansas Blue Cross is proud to participate in programs that improve the health of all Arkansans. We’re also proud of our partnership with the state on various initiatives throughout the years.
- Arkansas Blue Cross was the only company that offered health plans in all 75 counties during the launch of the state’s Affordable Care Act’s Private Option. That allowed the state to meet the federal government’s requirements for implementing the program.
- Our commitment to help Arkansas meet federal requirements included an initial investment of $18 million before the program even started – and the addition of 200 employees to our workforce. A decade later, we’re still the primary health insurance carrier for the most economically challenged areas of our state, where access to healthcare providers is lacking.
- Arkansas Blue Cross remains committed to improving access and services in our rural communities through various statewide partnerships and local entities.
Commitment to Arkansas’ communities
We established our charitable foundation, the Blue & You Foundation for a Healthier Arkansas, in 2001. Since then, the foundation has:
- Awarded more than $49 million in grants to thousands of health-improvement programs throughout our state – in all 75 counties
- Offered special grants to assist selected organizations during the COVID-19 pandemic
- In 2021, awarded $5.29 million in special grants for behavioral health-related programs in Arkansas and added more than $610,000 in its 2022 grant cycle.
Additionally, Arkansas Blue Cross contributes about $1 million in sponsorships annually to civic, cultural, educational and health-improvement organizations in Arkansas and consistently supports disaster-relief efforts in our state, both through funding and through volunteerism by our employees.
Arkansas Blue Cross remains committed to improving the health of all Arkansans and to working toward a sustainable approach for the future of healthcare in Arkansas. This commitment extends to all of our citizens.
Hopefully, this overview provides you additional information about the history of Arkansas Blue Cross and the role we play in our state’s healthcare system. We remain committed to our members, the dedicated healthcare providers who continue to provide vital services to all Arkansans and to the communities throughout our state.