Tufts Health Plan Announces Second Quarter 2019 Financial Results

Tufts Health Plan reported an adjusted net income of $33.5 million for the second quarter

agosto 15, 2019  

Watertown, MA – Tufts Health Plan today reported an adjusted net income of $33.5 million for the second quarter ended June 30, 2019. Adjusted net income includes operating income of $25.6 million and investment income of $7.9 million, excluding mark-to-market investment gains and losses on equity securities, with premiums and fees of $1.43 billion. Membership was 1.16 million at the end of the second quarter.

“Our first-half result positions us well for the year. All of our business segments contributed to produce balanced results, with stable membership year over year,” said Umesh Kurpad, chief financial officer. “We continue to deliver on our commitments to our members and customers by effectively managing our medical and administrative costs. However, our MassHealth business is under pressure. We are working with our partners - the Commonwealth and our Accountable Care Organization provider partners - to make important improvements to bring long-term stability to the ACOs.”

These results compare to a year ago when Tufts Health Plan reported a net income of $60.1 million for the second quarter, which comprised an operating income of $48.1 million and investment income of $12 million with premiums and fees of $1.36 billion. Membership was 1.16 million at the end of the second quarter 2018.

Year to date, adjusted net income for the six months ended June 30, 2019 was $63.9 million with premiums and fees of $2.8 billion. These results compare to a year ago when Tufts Health Plan reported net income of $33.2 million for the six months ended June 30, 2018 with premiums and fees of $2.7 billion. Operating income for the six months ended June 30, 2019 was $46.5 million, compared to operating income of $12.0 million for the six months ended June 30, 2018.

Adjusted net income is net income excluding mark-to-market of unrealized investment gains and losses on equity securities as required under GAAP accounting rules effective January 1, 2019. Unrealized gain and (loss) on equity securities for the quarter ended June 2019 and for the six months ended June 2019 was $26.6 million and $88.8 million, respectively.