Managed Care

 

Market Turmoil Takes Toll

MANAGED CARE June 2009. © MediMedia USA
News and Commentary

Market Turmoil Takes Toll

MANAGED CARE June 2009. ©MediMedia USA

Health insurance plans’ net income plummeted 36 percent in 2008, according to a recent report by Mark Farrah Associates, a consulting company. The company cites — what else? — the recession and market turmoil.

While overall revenues increased 6.2 percent, from $270 billion in 2007 to $287 billion in 2008, profit margins fell from 6.2 percent to 3.7 percent.

The top eight health plans — Aetna, Cigna, Health Care Service Corp., Health Net, Humana, Kaiser Permanente, UnitedHealth Group, and WellPoint — also saw their membership growth slow.

These eight plans saw substantial write-offs and write-downs of investment portfolios and reductions in investment income. Also, they missed membership growth targets.

In addition, there were increased employee severance charges and escalating medical loss ratios.

Meetings

4th Partnering With ACOs Summit Los Angeles, CA October 27–28, 2014
PCMH & Shared Savings ACO Leadership Summit Nashville, TN November 3–4, 2014
2014 Annual HEDIS® and Star Ratings Symposium Nashville, TN November 3–4, 2014
Medicare Risk Adjustment, Revenue Management, & Star Ratings Fort Lauderdale, FL November 12–14, 2014
World Orphan Drug Congress Europe 2014 Brussels, Belgium November 12–14, 2014
Healthcare Chief Medical Officer Forum Alexandria, VA November 13–14, 2014
Home Care Leadership Summit Atlanta, GA November 17–18, 2014
HealthIMPACT Southeast Tampa, FL January 23, 2015