Jane Dotson
Premera Blue Cross is a health insurance company based in the United States. It is a not-for-profit enterprise that provides health insurance and related services to around 2 million people. Premera Blue Cross operates in Washington state and Alaska and is an independent licensee of the Blue Cross Blue Shield Association. The company has had a long history, starting as Washington Hospital Service in 1933, and has since gone through several name changes and mergers.
What You'll Learn
Premera Blue Cross is a not-for-profit health insurance company
Premera Blue Cross is a licensee of the Blue Cross Blue Shield Association and sells health insurance plans under the Blue Cross license in Washington state (excluding Clark County) and under both Blue Cross and Blue Shield licenses in Alaska. The company provides health insurance and related services to approximately 2 million people.
In 2002, Premera's executives informed the Washington commissioner, Mike Kreidler, of their intention to transition from a non-profit to a for-profit joint-stock company. However, this request was officially ended in 2007, and Premera Blue Cross remains a not-for-profit entity.
As a not-for-profit health insurance company, Premera Blue Cross focuses on serving its members and communities rather than generating profits for shareholders. This allows the company to prioritize reinvesting its surplus funds into improving healthcare services, coverage, and access for its members. Premera has demonstrated its commitment to its members through actions such as waiving fees for the 2009-H1N1 vaccine and offering advance payments to healthcare providers during the COVID-19 crisis.
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It operates in Washington and Alaska
Premera Blue Cross is a health insurance company that operates in Washington state and Alaska. It is a not-for-profit Blue Cross Blue Shield-licensed company, based in Mountlake Terrace, Washington. The company has been operating in Washington since 1945 and in Alaska since 1957.
In Washington, Premera sells health insurance plans under the Blue Cross license, excluding Clark County. In Alaska, it sells insurance under both the Blue Cross and Blue Shield licenses. The company changed its name to Blue Cross of Washington and Alaska in 1969, reflecting its presence in both states. This name change followed the company's founding in 1933 as Washington Hospital Service and its subsequent expansion into Alaska in 1957.
Premera Blue Cross offers health insurance and related services to approximately 2 million people across the two states. The company has a long history in the region, and its operations in Washington and Alaska are central to its business.
The company's presence in these states has been marked by several notable events. In 2002, Premera's executives informed the Washington commissioner, Mike Kreidler, of their intention to transition from a non-profit to a for-profit joint-stock company. However, this request was officially ended in 2007. In 2012, the Seattle Times published an article alleging that Premera, along with other non-profit insurance companies, was stockpiling profits while increasing rates.
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Premera has been in business since 1933
The company began operating in Washington in 1945 and expanded to Alaska in 1957. In 1969, its name was changed to Blue Cross of Washington and Alaska. Premera has been in Alaska for over 60 years, and in Washington for almost 80 years.
In June 1998, Blue Cross of Washington and Alaska merged with Spokane's Medical Service Corporation, and the company was renamed Premera Blue Cross. Premera is the largest carrier in the Pacific Northwest and is committed to controlling rising medical costs while ensuring access to quality care for its customers and their employees.
Premera offers a range of health plans, including virtual care options, to meet the needs of its customers and their employees. It provides support to businesses of all sizes, from those with one employee to more than 5,000.
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The company provides health insurance to around 2 million people
Premera Blue Cross is a health insurance company that provides coverage for around 2 million people. As a licensed Blue Cross Blue Shield health insurance provider, the company offers plans under the Blue Cross license in Washington state, excluding Clark County, and under both Blue Cross and Blue Shield in Alaska. With a long history in the industry, Premera has been operating in Washington since 1945 and expanded to Alaska in 1957.
The company's roots go back even further to 1933 when it was founded as Washington Hospital Service. It later changed its name to Blue Cross of Washington and Alaska in 1969. In 1998, a merger with Spokane's Medical Service Corporation led to the adoption of the Premera Blue Cross name.
Premera Blue Cross is a not-for-profit entity, and it has a strong presence in the states it serves. Its coverage plans are tailored to meet the specific needs of individuals and families residing in these regions. The company has established itself as a trusted and reliable health insurance provider for its members, ensuring they have access to quality healthcare services.
Over the years, Premera has demonstrated its commitment to its members' well-being. During the 2009 H1N1 outbreak, the company waived deductibles or co-pays for its fully insured members' vaccine fees. More recently, in response to the COVID-19 crisis in 2020, Premera offered advance payments of up to $100 million to healthcare providers, further showcasing its dedication to supporting its members' health and safety.
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In 2015, Premera experienced a security breach, leaking members' private information
Premera Blue Cross, the largest health insurance company in the Pacific Northwest, experienced a significant security breach in 2015, compromising the private information of its members. The breach affected more than 10.4 million individuals across the country, including approximately 6.4 million residents of Washington State.
The attack, which began in May 2014 and lasted until March 2015, exposed sensitive personal information, including private health data, Social Security numbers, banking details, birth dates, addresses, phone numbers, and email addresses. This type of information is highly valuable to cybercriminals, as it can be used for blackmail, insurance fraud, banking fraud, and identity theft, among other malicious purposes.
Premera disclosed the breach on March 17, 2015, in a public statement, acknowledging that attackers had gained access to their customers' claims data. The company emphasized that they had not found evidence of the stolen information being used for harmful purposes. However, the breach highlighted Premera's failure to address known cybersecurity vulnerabilities and adequately protect its members' sensitive data.
As a consequence of the breach, Premera faced legal repercussions. An investigation led by Attorney General Bob Ferguson resulted in Premera paying $10 million for their negligence in securing sensitive consumer data and for misleading consumers about their privacy practices. The consent decree also mandated Premera to implement stringent data security controls, conduct regular security assessments, and provide data security reports to the Washington State Attorney General's Office.
The Premera security breach underscores the critical importance of data security, especially in the healthcare industry, where personal and confidential information is routinely handled. It serves as a stark reminder that organizations must prioritize safeguarding sensitive data to protect their customers' privacy and prevent potential harm.
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Frequently asked questions
Premera Blue Cross is a not-for-profit health insurance company based in Washington, United States.
Premera sells health insurance plans in Washington state, excluding Clark County, and in Alaska.
Premera provides health insurance and related services to approximately 2 million people.
Premera was founded in 1933 as Washington Hospital Service and has been operating in Washington since 1945 and in Alaska since 1957.
In 2002, Premera executives expressed their intent to convert to a for-profit joint-stock company, but this request was ended in 2007, and Premera remains a not-for-profit entity.
