Tufts Health Plan Announces Second Quarter 2020 Financial Results

Tufts Health Plan today reported an adjusted net income of $5.8 million for the six months ended June 2020

August 14, 2020  

Watertown, MA – Tufts Health Plan today reported an adjusted net income of $5.8 million for the six months ended June 2020. Adjusted net income includes an operating loss of $6.3 million and investment income of $12.1 million, excluding mark-to-market investment gains and losses on equity securities, with premiums and fees of $2.9 billion. Unrealized gain and (loss) on equity securities for the six months ended June 30, 2020, was ($26.2) million, with membership of 1.15 million.

These results compare to a year ago when Tufts Health Plan reported an adjusted net income of $63.9 million for the six months ended June 30, 2019, which comprised an operating income of $46.5 million and investment income of $17.3 million, excluding mark-to-market investment gains and losses on equity securities, with premiums and fees of $2.77 billion. Membership was 1.16 million at the end of the second quarter 2019.

“Tufts Health Plan proudly serves all segments of the market, regardless of a person’s age or life circumstance. This diversity in our business translates into different financial pressures, such as significantly higher COVID-19 infection rates and treatment costs for our members, particularly those who rely on both Medicare and Medicaid,” said Umesh Kurpad, CFO. “Year-to-date, our earnings were challenging, with the increased costs of COVID-19-related expenses across virtually all of our businesses, as well as continued revenue pressure in MassHealth. We incurred close to $115 million in COVID-19-related expenses through June. For the full year, we are projecting COVID-19 expenses to reach $220 million. The pandemic cost tail is anticipated to be long with the lingering impact of COVID-19 survivors and increased morbidity from deferred care. Investment return lagged our expectations and were not accretive to our capital base.”

For the second quarter ended June 30, 2020, Tufts Health Plan reported an adjusted net income of $42.5 million, which comprised an operating income of $37.6 million and investment income of $4.9 million, excluding mark-to-market investment gains and losses on equity securities, with premiums and fees of $1.44 billion.

These results compare to a year ago when Tufts Health Plan reported an adjusted net income of $33.5 million for the second quarter ended June 30, 2019. Adjusted net income comprised 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.

As the global COVID-19 pandemic shows no signs of abating, Tufts Health Plan continues to support its members, providers, customers, employees and others in the community through:

  • Enhancing benefits for members
  • Compensating providers at 100 percent of an in-office rate for telehealth
  • Working with providers on a case-by-case basis to address their concerns regarding payment stability
  • Extending premium payment periods for employers who need a bit more time to make payments, on a case-by-case basis
  • Contributing $2 million to support those affected by the coronavirus outbreak in Massachusetts, Rhode Island, New Hampshire and Connecticut
  • Establishing an Employee Relief Fund to support Tufts Health Plan employees who have been affected by the coronavirus pandemic and are experiencing financial hardship, such as the loss of a job by someone in their household

Read more on Tufts Health Plan’s response to the COVID-19 pandemic here.