- Loss ratio — amounts incurred for covered hospital, medical and prescription
drug expenses for our members, expressed as a percent of premiums.
- Administrative expense ratio — the costs of processing and paying member
claims, providing customer service and other administrative costs, including premium
taxes, expressed as a percent of premiums.
- Net income — what is left after payment for covered benefits, administrative
expenses and taxes. Since Arkansas Blue Cross is a not-for-profit, mutual insurance
company, this amount is held for the benefit of members, to be used to pay claims
or expenses in years when revenues are not sufficient to cover them. Arkansas Blue
Cross does not pay dividends to stockholders.