Health Insurance Basics
Stock vs. Mutual Companies
Wellmark Blue Cross and Blue Shield is not owned by stockholders. Because
we pay no dividends to stockholders, revenues earned by Wellmark are used
in only two ways:
- To pay providers and members for covered benefits
- To pay associated administrative expenses
Wellmark seeks a small profit. Our goal is a 2% operating margin. Contrast
that with a publicly traded company whose goal is to maximize profits
for shareholders. Most for-profit health insurers seek a 6% to 8% profit
margin*. Wellmark is different. Our status as a mutual insurance company
ensures that every dollar we make goes to the benefit of our customers.
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