Washington Health Plans Begin 2015 in the Red
By David Peel
Publisher and Editor
Washington Healthcare News
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Original Publish Date: Jun 8, 2015
Sixteen of the largest domestic health plans in Washington State recently filed financial reports for the three months ended March 31, 2015 and all but four reported a net loss. Figures were comparable to the first three months of 2014 when twelve out of fifteen plans reported a net loss.
Plan representatives cited the ACA and and its impact on the Washington State health insurance market as the primary reason for these volatile financials.
Our report shown here highlights financial results and shows member months (the combined total of month ending membership for each three month period), total revenues, net underwriting gain (loss), investment gain (loss), net income (loss) and statutory capital.
The second page of our report presents key financial statistics. When the financial figures on the first page are divided by member months, a monthly average is obtained that is helpful when comparing one plan to another. These “per member per month” averages are presented in the middle section of the second page.
Finally, we present statutory capital per average member in the right hand section of the second page. 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.
Based on these numbers, and figures we’ve reported previously, plans are expected to request significant rate hikes at their earliest opportunity.
Our next financial report will cover the second quarter of 2015 compared to the second quarter of 2014.
David Peel can be reached at dpeel@healthcarenewssite.com.