Tufts Health Plan Announces Third Quarter 2019 Financial Results

Tufts Health Plan reported an adjusted net income of $5.5 million for the third quarter

November 15, 2019  

Watertown, MA – Tufts Health Plan today reported an adjusted net income of $5.5 million for the third quarter ended September 30, 2019.  Adjusted net income includes operating loss of $6.7 million and investment income of $12.2 million, excluding mark-to-market investment gains and losses on equity securities, with premiums and fees of $1.38 billion. Membership was 1.16 million at the end of the third quarter.

“While all our divisions are contributing to surplus on a year to date basis, we faced some headwinds this third quarter,” said Umesh Kurpad, chief financial officer for Tufts Health Plan. “We continue to see pressure in our government-sponsored programs.  However, our strong investment performance provides a hedge against this volatility.”

These results compare to a year ago when Tufts Health Plan reported a net income of $61.6 million for the third quarter, which comprised an operating income of $54.1 million and investment income of $7.4 million with premiums and fees of $1.33 billion. Membership was 1.16 million at the end of the third quarter 2018.

Year to date, adjusted net income for the nine months ended September 30, 2019 was $69.4 million with premiums and fees of $4.15 billion.  These results compare to a year ago when Tufts Health Plan reported net income of $94.8 million for the nine months ended September 30, 2018 with premiums and fees of $4 billion. Operating income for the nine months ended September 30, 2019 was $39.8 million, compared to operating income of $66.1 million for the nine months ended September 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 September 30, 2019 and for the nine months ended September 30, 2019 was $8.2 million and $96.9 million, respectively.