State Health Insurers See Sharp Drop In Profits
Massachusetts Health Insurers are reporting a sharp drop in second-quarter profits, a fall they attribute to pressure to hold down premium increases.
Blue Cross-Blue Shield of Massachusetts, the state’s largest health insurance company, yesterday reported a nearly 50-percent drop in net income for the three months ending June 30th, as compared to the same period a year ago.
Other providers reported much steeper drops during the same period. Harvard Pilgrim Health Care reported a decrease of 56-point-three-percent, Fallon Community Health Plan dropped 68-point-four-percent, and Tufts Health plan lost 93-point-six-percent of their net income from the year before.
All of the providers said intense pressure from small business and the Patrick administration to keep premiums low contributed to the declines.