jump to navigation search this article needs additional citations for verification . please help improve this article by adding citations to reliable sources . unsourced material may be challenged and removed . january 2015 learn how and when to remove this template message blue cross and blue shield of alabama type non profit private company industry insurance founded 1936 headquarters birmingham alabama usa key people terry kellogg president and chief executive officer cindi vice chief financial officer tim sexton chief marketing officer tim kirkpatrick executive vice president products health insurance revenue 4.27 billion usd 2010 number of employees 4 000 2014 website http www.bcbsal.com blue cross and blue shield of alabama is a health insurance company headquartered in birmingham alabama . the company was founded in 1936 provides coverage to more than 3 million people and is a member of the blue cross and blue shield association . blue cross and blue shield of alabama employs nearly 4 000 people which includes almost 3 000 people at its corporate headquarters in birmingham . the company also operates cahaba government benefit administrators and cahaba safeguard administrators both headquartered in birmingham . contents 1 organization 1.1 united trust insurance company 1.2 cahaba government benefit administrators llc 1.3 cahaba safeguard administrators llc 1.4 leadership compensation 2 history 3 law suits 4 references 5 external links organization edit blue cross and blue shield of alabama bcbs is classified as a 501 m company by the irs . under state law it is classified as a special health benefit service plan not an insurance company although its coverage functions like health insurance . as special health benefit service plan the alabama department of insurance does not automatically review bcbs rates . 1 bcbs owns alabama industries financial corporation which owns united trust insurance company . bcbs owns preferred care services which owns pcs llc . bcbs also owns prime therapeutics llc and the caring foundation . see bcbs organizational chart 2 17 united trust insurance company edit in 1986 bcbs had acquired a life insurance company named modern american life insurance company incorporated in 1964 . a lawsuit forced bcbs to change life insurance coverage to disability coverage and the company was renamed to united trust insurance company in 1988 . over the years it came to assume risk associated with bcbs long term care policies and sold short term disabilty coverage . by the end of 2012 the company held us 1 million of capital stock and a surplus of us 986 million . 2 8 as of 2012 update united trust insurance company had agreements with multiple other insurance companies like able benefit solutions bcs bishop cannon and stacy insurance company companion life insurance company medical risk managers inc glencairn health and specialty . it was tasked with marketing stop and excess loss reinsurance products . it was deemed a 18 u.s.c. 1033 insurer but 1033 did not apply because it had no employees . 2 17 cahaba government benefit administrators llc edit cahaba government benefit administrators gba headquartered in birmingham has been a financial intermediary with the centers for medicare & medicaid services cms administering alabama medicare fee for service claims . prior to medicare contracting reform in 2005 cms awarded cahaba a no bid contract . 3 2 in january 2009 cahaba won a us 335 million 5 year contract with the cms to administer medicare insurance in 3 more states besides alabama georgia tennessee and in mississippi for part b medicare . 3 2 the contract s full name is jurisdiction 10 j10 a b medicare administrative contract . cahaba also provides regional home health intermediary coverage for numerous states across the country . cahaba safeguard administrators llc edit cahaba safeguard administrators headquartered in birmingham was founded in 2002 to administer medicare fraud prevention and is one of 12 contractors under the centers for medicare & medicaid services . leadership compensation edit ceo terry d. kellogg s total compensation for 2013 was 4.84 million including a salary of 999 959 bonuses of 3 580 651 and other compensation of 257 227 . compensation in 2013 was a 95.5 percent raise since 2011 . 4 history edit blue cross and blue shield of alabama was founded in 1936 as the hospital service corporation . in 1952 the company changed its name to blue cross blue shield of alabama . in 1970 the name was changed back to blue cross and blue shield of alabama bcbs . by that year it had increased its enrollment to over 1 million people . by 1994 the company increased enrollment to 2 million people and by 2001 it increased to 3 million . at the end of 2011 bcbs assets totalled 2.4 billion according to alabama department of insurance records . 1 it had a revenue of 4.1 billion and a net income of 257 million in 2011 a 58 percent gain from 2010 . 1 as of 2012 update bcbs had amassed a surplus of 991 million which the insurance industry calls unassigned funds . in 2011 bcbs had a market share of 90 percent . 1 law suits edit in 1998 sanderson et al vs. blue cross and blue shield of alabama was resolved by bcbs having to establish new capital benchmark guidelines for its unassigned funds and to adjust benefit rates by us 208 million minus legal fees over 3 years prospective rate adjustment program . 5 bcbs was sued seven times in 2012 on anti trust grounds for conspiring with others to avoid competition in u.s. district court in birmingham . 1 references edit a b c d e russell hubbard 5 august 2012 . blue cross blue shield s 2.8 billion in assets draws criticism . the birmingham news . alabama media group . a b c mary b packard cpa 31 december 2012 . report of examination of united trust insurance company pdf . alabama department of insurance . retrieved 15 december 2014 . a b cms.gov 22 september 2014 . jurisdiction 10 fact sheet . centers for medicare & medicaid services . retrieved 15 december 2014 . mike oliver 15 august 2014 . top 10 execs at alabama s blue cross doubled their pay in last two years . birmingham news . alabama media group . retrieved 15 december 2014 . bcbs 19 january 2004 . bluecross actuaria report and prap pdf . examination reports . al department of insurance . retrieved 15 december 2014 . external links edit blue cross and blue shield of alabama s website retrieved from https en.wikipedia.org w index.php title blue cross and blue shield of alabama & oldid 739083640 categories insurance companies of the united statescompanies based in birmingham alabamamembers of blue cross blue shield associationhidden categories articles needing additional references from january 2015all articles needing additional referencesarticles containing potentially dated statements from 2012all articles containing potentially dated statements navigation menu personal tools not logged intalkcontributionscreate accountlog in namespaces article talk variants views read edit view history more search navigation main pagecontentsfeatured contentcurrent eventsrandom articledonate to wikipediawikipedia store interaction helpabout wikipediacommunity portalrecent changescontact page tools what links hererelated changesupload filespecial pagespermanent linkpage informationwikidata itemcite this page print export create a bookdownload as pdfprintable version languages add links this page was last modified on 12 september 2016 at 18 08 . text is available under the creative commons attribution sharealike license ; additional terms may apply . by using this site you agree to the terms of use and privacy policy . wikipedia is a registered trademark of the wikimedia foundation inc. a non profit organization . privacy policy about wikipedia disclaimers contact wikipedia developers cookie statement mobile view