Health Plans Continue Financial Stumble Through June 30, 2014
By David Peel
Publisher and Editor
Washington Healthcare News
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Original Publish Date: September 8, 2014
Fourteen of the largest domestic health plans in Washington State recently filed financial reports for the six months ended June 30, 2014 with only two reporting higher net income than the same period in 2013 and eight reporting a net loss.
These figures represent the first six months of financial results associated with full implementation of the Affordable Care Act.
Our report shown here highlights financial results and shows member months (the combined total of month ending membership for each six month period), total revenues, net underwriting gain (loss), investment gain (loss), net income (loss) and statutory capital.
Our report also presents key financial statistics. When the financial figures 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 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.
These financial results may not be adequately reflected in the January 2015 rate increases because of rate filing deadlines but will be passed on to customers at some point in the next few years. Our next financial report will cover the nine months ended September 30, 2014 compared to the nine months ended September 30, 2013.
David Peel can be reached at dpeel@healthcarenewssite.com.