News Updates

By Dana Cutter

11 Mar 2010

MA Health Insurers Show Declining Revenues, Profits and Executive Compensation for 2009

2009's Biggest Loser is Blue Cross with a Loss of $149 Million and Fallon Coming in Second with Losses Nearing $29 Million.

Tufts, Harvard and Health New England continued to show profitability over the past two years and also managed to increase membership as well. While a few plans continue to hide their revenue results this year - - they are still required to file their executive compensation plans with the Division of Insurance (DOI). A few plans had flat or declining salaries in the wake of their 2009 revenue annoucnements. A few managed to scale back bonuses while giving out modest salary increases. We were not able to obtain salaries for Blue Cross and Fallon. After 2008's salary increases at Blue Cross and their incredible amount of financial losses last year - - it will be interesting to see how their executives fare.

Medicare Sherpa has scanned each document and placed a copy in our discussion forum. You are welcome to download and view each exhibit.

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By Dana Cutter

07 Mar 2010

CMS Increases Medicare Advantage Funding by 1.38% for 2011

CMS Annouces Rate Increases for 2011 Private Medicare plans, a major source of business for many health insurers, may see a small increase of 1.38% in funding from the federal government for 2011. (rates released Friday, February 19th).

These estimates are preliminary, final rates will not be published until early April. Wall Street and the Analyst community all have mixed reactions, but last year's reduction in payment (4.8%) to private Medicare plans resulted in upwards of nearly 50% increase in premiums to Medicare Advantage plan members for 2010. The average health plan receives about $900 per member per month and these cuts resulted in a reduction in revenue of nearly $45 per member per month. Many insurers simply passed the loss onto their members through rate increases.

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