Blue Cross Blue Shield Association

Nonprofit profile at a glance

EIN
135656874
IRS 990 coverage
2010–2024
Forms available
Form 990 2024
Location
Chicago, IL, USA
Phone
3122976369
Rating
91
Verdict
STRONG
Rating confidence
Moderate
Sector
Health, General and Financing

Reported finances

Revenue
$862,659,881
Expenses
$851,503,421
Assets
$1,245,975,964
Liabilities
$913,830,869

Source: IRS Form 990. Selected filing: tax year 2024. Amounts in USD.

Leadership & pay

78 people listed

Executive titles in this filing

  • KIM KECK (PRESIDENT AND CEO)
  • JENNIFER VACHON (EXECUTIVE VICE PRESIDENT (END 07/24))
  • SEAN ROBBINS (EXECUTIVE VICE PRESIDENT (END 05/24))
  • KARI HEDGES (SENIOR VICE PRESIDENT)
  • LACHLAN TIDMARSH (SENIOR VICE PRESIDENT)
  • WILLIAM NEHS (SENIOR VICE PRESIDENT (END 06/24))

Highest reported compensation

  • KIM KECK (PRESIDENT AND CEO): $8,414,231 total reported compensation
  • SEAN ROBBINS (EXECUTIVE VICE PRESIDENT (END 05/24)): $1,651,878 total reported compensation
  • WILLIAM NEHS (SENIOR VICE PRESIDENT (END 06/24)): $1,627,148 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2024. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

The association serves its membership consisting of independent blue cross and blue shield member plans that operate within specific geographic service areas. The association provides a variety of services to member plans and coordinates government services, such as the contract under the federal employee health benefit program (fep), which is the core of the organization's exempt purpose of promoting the common good and general welfare of the community by fostering broadbased health insurance coverage.

What it reported doing in 2024

The blue cross and blue shield association's federal employee program (fep) administers the blue cross and blue shield service benefit plan. Approximately 67.5 percent of all federal employees and retirees who received their health care benefits through the government's federal employees' health benefits program (fehbp) are members of the service benefit plan receiving health coverage through member plans. The service benefit plan has been part of the fehbp since its inception in 1960 and is the largest plan in the program. 2024 was another strong year for the fep, blue cross blue shield fep dental and blue cross blue shield fep vision. We attained historic levels of achievement on several business metrics: enrollment of over 5.6 million members and a record 39 program service accomplishments, consecutive years of open season enrollment growth, and retention remains at a high-level of 99.3 percent.

Operating model

Revenue model
Other-operating. 98% of the money available for current operations came from other operating revenue.
Distribution model
Direct operator. The filing allocates 100% of reported program-service expenses outside its grant, affiliate-payment, and member-benefit lines. This expense classification does not rule out separately announced grant awards.

The verdict

STRONG - A large share of available resources goes toward mission work and the filed numbers largely add up. Expenses are high relative to revenue and total assets are small relative to annual expenses; liquid coverage is unknown.

Rating breakdown

  • Financial Efficiency: 86
  • Transparency & Controls: 100
  • Accountability: 98
  • Sustainability: 39
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 96%; rating input score 96
  • Program expense ratio: 96.9%; rating input score 97
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 68th percentile among comparable filings
  • Pay-setting controls: 6 of 6 controls in place; rating input score 100
    • Compensation committee: Pass
    • Independent consultant: Pass
    • Other Form 990s reviewed: Pass
    • Written employment contract: Pass
    • Compensation survey or study: Pass
    • Board or committee approval: Pass
  • Foreign activity oversight: Limited
  • Grant itemization coverage: 99.9%; rating input score 100; 47th percentile among comparable filings
  • Major donor itemization: Limited
  • Related-party transparency: Yes; rating input score 100

Accountability

  • Independent voting board: 97.1%; rating input score 97; 52nd percentile among comparable filings
  • Governance controls: 9 of 9 controls in place; rating input score 100
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Pass
    • Other executive compensation review process: Pass
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: 1.3%; rating input score 39; 39th percentile among comparable filings
  • Total-asset coverage ratio: 1.46; rating input score 52; 52nd percentile among comparable filings
  • Liabilities to assets ratio: 0.73; rating input score 20; 20th percentile among comparable filings
  • Officer compensation ratio: 4.2%; rating input score 23; 23rd percentile among comparable filings

Growth

  • Program expense growth: 6% per year; rating input score 100; 49th percentile among comparable filings
  • Revenue growth: 6.1% per year; rating input score 100; 53rd percentile among comparable filings
  • Asset growth: 6.8% per year; rating input score 100; 50th percentile among comparable filings

Details

  • Where the money goes: 96% of revenue deployed · 96.9% of spending went to programs
  • Governance: 33 of 34 board members independent · 9 of 9 filing controls reported
  • Programs: 4 filed program accomplishments · $825.4M in reported program spending
  • Leadership: top reported pay $8.4M · 78 people listed · 6 of 6 pay-setting controls reported
  • Highest-paid contractors: 5 contractors listed · $163.7M reported
  • Consistency: 35 of 35 current checks pass
  • Schedules: 7 filed schedules · includes grants, executive pay, and related organizations
  • Filing history: 14 filing years from 2010 to 2024
  • Contacts: How to reach this organization
  • Money network: 63 filed money-flow records
  • Related organizations: 19 filed related-organization links
  • Grant readiness: Federal tax and exclusion status, award history, and grant-maker relationships.
  • People: Everyone the filings name, and which of them the filings identify by more than a name.

Key Signals

Signals prioritize questions for review. They are not findings of misconduct.

  • Moderate — Sustainability: Operating margin scored 39/100.
  • Review — Sustainability: Total-asset coverage ratio scored 52/100.
  • High — Sustainability: Liabilities to assets ratio scored 20/100.
  • High — Sustainability: Officer compensation ratio scored 23/100.