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Perhaps in an attempt to sell more books, Mr. Potter has played loose with the facts. Here is the real story on BlueCross BlueShield of Tennessee (BCBST): Our Profits In 2010, BCBST earned 2.5 cents from each premium dollar collected. The company made only one half of one cent in 2009. We actually pay claims. To be exact, we paid 61.9 million claims in 2010 totaling $8.7 billion for our 3 million members, who would have paid much more without the discounts we negotiate. Our Reserves Built over 65 years, our strong reserves provide the ultimate consumer protection. The 2008 financial meltdown is a real example of why we need healthy reserves. Our reserves value dropped by more than 20 percent, yet we met all obligations and remained financially strong. No bailout needed. Potter additionally calls for using our reserves to lower premiums for one year. This idea fails to recognize the real drivers of premium increases: rising costs and use of medical services. It also ignores the fact we would be forced to raise premiums the following year to catch up with two years of medical cost increases. Our Not-for-Profit Status And although not-for-profit, we paid over $240 million in local, state and federal taxes last year. Additionally our foundation and trust invested more than $7 million in organizations that benefit the health and well-being of our fellow Tennesseans. Our Medical Loss Ratio (MLR) Potter conveniently elects to exclude our small and large group 2010 MLR figures — both of which exceed requirements of the health care reform law. And although at 76.7 percent for individual policyholders, which represent about three percent of our members, we already have efforts underway to meet the requirement. Our Headquarters Building our campus in Chattanooga was a deliberate decision of our board of directors to enhance productivity and lower our operating costs. The latter by more than $4 million annually (leases, maintenance, energy, equipment, etc.). To date, only one of our former buildings has not been sold; the rest have new owners who are bringing increased tax dollars into our city.