In 2017, BlueCross BlueShield of Tennessee’s headquarters brought in an estimated $1.6 billion in income, nearly 20,000 jobs, and $367.9 million in tax revenue to the state’s economy, according to a UT study released Monday.
The economic report, completed by the Boyd Center for Business and Economic Research, specifically looks at the statewide economic benefits of the company’s headquarters and regional offices with headquarters-like functions and analyzes the direct, indirect, and induced impacts BlueCross has on income, employment, and taxes in Tennessee.
It also notes several intangible benefits the company brings to the state including its charitable donations and efforts to attract and retain workers in Tennessee. The company commissioned the Boyd Center to complete the study.
“This report demonstrates the important role that BlueCross BlueShield’s headquarters plays in Tennessee’s economy,” said Bill Fox, the center’s director. “This is in addition to them helping meet the healthcare needs of many Tennesseans.”
Highlights from the report include:
BlueCross payroll spending, including the payment of salaries and benefits, totaled $569.2 million in 2017 and generated an additional $714.6 million of income for Tennesseans through its related multiplier effects—how those dollars are spent and affect the economy.
BlueCross generated an additional $312.2 million from nonpayroll spending and its related multiplier effects.
In 2017, BlueCross payroll spending generated 9,605 full-time jobs in Tennessee, while nonpayroll spending created an additional 8,438 full-time jobs.
BlueCross is the largest health plan in the state and has been in operation since 1945. In 2017, the company served 3.4 million members and more than 11,000 companies.
“Tennessee is a special place we’ve been honored to call home as a company for more than 70 years, and that’s something that helps to set us apart as a health plan," said John Giblin, BlueCross’ executive vice president and chief financial officer. "Through our mission we strive to help our members—our neighbors—achieve peace of mind through better health. And, with our people and operations right here, we’re proud that better health also extends to the state in the form of strong economic impact.”
The Boyd Center is housed within UT’s Haslam College of Business.