Top Mass. Health Insurers See Earnings Plunge
BOSTON — The top health insurers in Massachusetts have posted sharply lower earnings for the second quarter compared with the year-ago period because of pressure from small business customers and the state to hold down premium increases.
The state’s largest health insurer, Blue Cross Blue Shield of Massachusetts, on Wednesday posted net income in the quarter ending June 30 that was 50 percent lower. The drop was steeper for other plans – more than 56 percent at Harvard Pilgrim Health Care, nearly 94 percent at Tufts Health Plan, and more than 68 percent at Fallon Community Health Plan.
The Boston Globe reports that insurers attributed quarterly earnings declines primarily to efforts to keep premiums low. They also cited a more competitive market, with companies trying to attract customers with lower-cost products.