Managed Care
Disease
Management

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

HealthIMPACT Southeast Tampa, FL January 23, 2015