HMO profits down slightly, Premium revenue up

Feb 26, 2010
By: Kim Streit

Florida's HMOs reported net income of $438.6 million for the nine months ending September 30, 2009, compared to $441.3 million, down 0.6 percent from the same period in 2008, for the plans that have been operational for three or more years.

Premium revenues increased 7.1 percent from 3Q08 to 3Q09. Premium revenue per member per month averaged $450.65 for the third quarter 2009.

Profit margins averaged 3.1 percent, down from 3.4 percent from 3Q08.

Humana Medical Plan reported the largest net income, followed by CarePlus Health Plan, Aetna Health Plan, Well Care, and Health Options. These five health plans had combined profits of $326.7 million, representing 75.3 percent of total HMO profits in Florida.

Medical loss ratios remained virtually unchanged at 84.3 percent.

This information and health plan specific financial trends and comparisons are available in the FHA Eye on the Market: HMO Indicators Report. To order, you can download the order form at http://www.fha.org/acrobat/indicatorsorder.pdf or call Angela Colkett at (407) 841-6230 or e-mail, angelac@fha.org. A summary of HMO trends is also available in the latest Data Brief. You can download the Data Brief at http://www.fha.org/acrobat/DebbieH/20093QHMO.pdf.