Tufts Health Plan Announces Third Quarter 2020 Financial Results

Tufts Health Plan today reported an adjusted net income of $28.9 million for the nine months ended September 30, 2020

November 13, 2020  

Watertown, MA – Tufts Health Plan today reported an adjusted net income of $28.9 million for the nine months ended September 30, 2020. Adjusted net income includes an operating income of $1.3 million and investment income of $27.6 million, excluding mark-to-market investment gains and losses on equity securities, with premiums and fees of $4.47 billion. Unrealized gains on equity securities for the nine months ended September 30, 2020, was $15.2 million, with membership of 1.16 million.

These results compare to a year ago when Tufts Health Plan reported an adjusted net income of $69.4 million for the nine months ended September 30, 2019, which comprised an operating income of $39.8 million and investment income of $29.6 million, excluding mark-to-market investment gains and losses on equity securities, with premiums and fees of $4.15 billion. Membership was 1.16 million at the end of the third quarter 2019.

“Our results reflect reduced utilization for more traditional health care services as well as the costs of COVID-related treatment. The global pandemic continues to create an unstable and unpredictable environment in which to operate. As we approach the colder months, we anticipate increased costs in COVID-related treatment, putting further pressure on our business,” said Umesh Kurpad, chief financial officer. “We also continue to assess underlying issues in our MassHealth business to optimize performance as best we can.”

For the third quarter ended September 30, 2020, Tufts Health Plan reported an adjusted net income of $23.1 million, which comprised an operating income of $7.6 million and investment income of $15.5 million, excluding mark-to-market investment gains and losses on equity securities, with premiums and fees of $1.56 billion.

These results compare to a year ago when Tufts Health Plan reported an adjusted net income of $5.5 million for the third quarter ended September 30, 2019. Adjusted net income comprised 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.