Health Plans Continue Losses Through June 30, 2015
By David Peel
Publisher and Editor
Oregon Healthcare News
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Original Publish Date: September 8, 2015
Fifteen of the largest domestic health plans in Oregon recently filed financial reports for the six months ended June 30, 2015 and all but three reported a net loss. These figures were comparable to the first six months of 2014 when all but three plans lost money.
Plan representatives cited the ACA, Cover Oregon’s severe operational issues and employee pension plan adjustments as primary reasons for the continued losses.
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.
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 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 National Association of Insurance Commissioners (NAIC). Information not required to be filed with the NAIC (self-insured and some Oregon 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 third quarter of 2015 compared to the third quarter of 2014.
David Peel can be reached at dpeel@healthcarenewssite.com