Washington Health Plan 2014 Net Income Down from 2013 levels
By David Peel
Publisher and Editor
Washington Healthcare News
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Original Publish Date: April 2, 2015
Fifteen of the largest domestic health plans in Washington State recently filed financial reports for the twelve months ended December 31, 2014 with only five reporting higher net income than the same period in 2013 and seven reporting a net loss.
The 2014 figures represent the first twelve months of financial results associated with full implementation of the Affordable Care Act (ACA).
Plan representatives cited the ACA and and its impact on the Washington State health insurance market as the primary reason for significant membership changes and volatile financials.
Our report, which can be downloaded 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 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 our report on 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.
Our next financial report will cover the first quarter of 2015 compared to the first quarter of 2014.
David Peel can be reached at dpeel@healthcarenewssite.com.