Washington State Health Plans Maintain Strong Financials Through 12/31/13
By David Peel
Publisher and Editor
Washington Healthcare News
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Original Publish Date: May 6, 2014
Fourteen of the largest domestic health plans in Washington State recently filed financial reports for the twelve months ended December 31, 2013 and the results were strong with seven reporting higher net income than the same period in 2012 and only four reporting a net loss.
These figures demonstrate the continued stability of Washington State health insurers as health care reform is implemented.
The first page of our report shown here, highlights financial results and shows member months (the combined total of month ending membership for each twelve month period), total revenues, net underwriting gain (loss), investment gain (loss), net income (loss) and statutory capital.
The second page of our report shown here, presents key financial statistics. When the financial figures on the first page are divided by member months, a monthly average is obtained that is valuable in comparing one plan to another. These “per member per month” averages are presented in the middle section of the page.
Finally, we present statutory capital per average member in the right hand section of the second page of our report. This is essentially the amount of “cushion” on a per member basis a company has available to cover inadequate cost estimates. Alternatively, this is the liquidating value of the company per average insured person.
As you review the numbers, keep in mind there are differences in the type of membership each plan serves.
All information in this report was obtained through publicly available reports filed with the Washington State Office of Insurance Commissioner (OIC). Information not required to be filed with the OIC (self-insured and some insured business from smaller, non-domestic carriers) is not included in this report nor is it referenced in this article.
Our next financial report will cover the three months ended March 31, 2014 compared to the three months ended March 31, 2013.
David Peel can be reached at 425-577-1334 or dpeel@healthcarenewssite.com.