October 30, 2014

Florida HMOs Report $88.6 million Loss for First Quarter 2014

Despite a 10 percent increase in enrollment, Florida HMOs reported an aggregate loss of $88.6 million for the first quarter of 2014. The last time the health plan industry as a whole reported a loss was the fourth quarter 2001. All but three plans saw their profit margins erode significantly. While premium revenue per member per month (PMPM) tracked medical/hospital expenses, administrative expenses PMPM almost doubled. Commercial enrollment was up 12.3 percent, reversing the minimal growth seen in the past, and Medicare enrollment grew 14.7 percent. Medicaid HMO enrollment increased only slightly by 3.9 percent, before the full rollout of the Medicaid Managed Medical Assistance program, which was completed in August 2014.  Detailed plan data is available online.

For more information, contact Kim Streit, vice president of health care research and information, at (407) 841-6230.