Tufts Health Plan Announces Fourth Quarter and Full Year 2019 Financial Results
Tufts Health Plan today reported an adjusted net loss of $2.5 million for the fourth quarter ended Dec. 31, 2019
Watertown, MA – Tufts Health Plan today reported an adjusted net loss of $2.5 million for the fourth quarter ended Dec. 31, 2019. Adjusted net income includes an operating loss of $14.1 million and investment income of $11.6 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 fourth quarter.
“While we faced some headwinds in the fourth quarter, we are pleased with our overall performance in 2019,” said Umesh Kurpad, chief financial officer for Tufts Health Plan. “One highlight - of many in 2019 -is remaining a national leader in health plan quality ratings. As the only health plan in Massachusetts that serves everyone, regardless of age or circumstance, our mission to serve our diverse communities is unwavering.”
These results compare to a year ago when Tufts Health Plan reported a net income of $35.6 million for the fourth quarter, which comprised an operating income of $6.5 million and investment income of $29.2 million with premiums and fees of $1.34 billion. Membership was 1.16 million at the end of the fourth quarter 2018.
Year to date, adjusted net income for the 12 months ended Dec. 31, 2019, was $66.8 million with premiums and fees of $5.58 billion. These results compare to a year ago when Tufts Health Plan reported net income of $130.4 million for the 12 months ended Dec. 31, 2018, with premiums and fees of $5.35 billion. Operating income for the 12 months ended Dec. 31, 2019, was $25.7 million, compared to operating income of $72.6 million for the 12 months ended Dec. 31, 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 Jan. 1, 2019. Unrealized gain and (loss) on equity securities for the quarter ended Dec. 31, 2019, and for the 12 months ended Dec. 31, 2019, was $29.5 million and $126.4 million, respectively.
Milestones of 2019:
- Earned a 5-star rating – the highest rating possible, for the fifth year in a row – from theCenters for Medicare & Medicaid Services for our Tufts Medicare Preferred HMO and SeniorCare Options plans, based on nearly 50 measurements that include health outcomes andmember satisfaction. Only 20 plans nationally achieved this rating.
- Earned 5 out of 5 by the National Committee for Quality Assurance (NCQA) on its annual ratingof our Massachusetts and Rhode Island HMO/POS and our Massachusetts PPO plans. Only threeother private health plans in the country earned a 5 rating, placing Tufts Health Plan in the topone percent of plans nationally.
- Rated 4.5 out of 5 by NCQA on its annual rating of Medicaid plans. Only 14 other Medicaidplans in the country received a 4.5 rating or better.
- Earned 100 percent on the annual Disability Equality Index and named a "Best Place to Workfor Disability Inclusion" by the American Association of People with Disabilities and Disability:IN.
- Named a Top Place to Work by The Boston Globe for the ninth consecutive year.
- Earned 100 percent on the 2020 Corporate Equality Index, the nation’s premier benchmarking survey and report on corporate policies and practices related to LGBTQ workplace equality, for the fourth consecutive year. Tufts Health Plan is among 686 major U.S. businesses that earned top marks this year.
- Hosted the company’s first-ever Unconscious Bias Day, an employee-led event highlighting the effects of unconscious bias in the workplace and exploring techniques to counter them.
- Joined Shatterproof, a growing national movement, adopting its eight National Principles of Care for the treatment of addiction.
- Named a Partner of the Year by The Boston Business Journal’s 14th Annual Corporate Citizens Awards. We were also recognized as one of the BBJ’s top 25 charitable contributors in Massachusetts for the seventh year in a row.
- Received ENERGY STAR certification for superior energy performance from the U.S. Environmental Protection Agency for the 14th year in a row.
- In honor of Tufts Health Plan’s 40th anniversary, the Tufts Health Plan Foundation contributed $1 million to more than 40 New England nonprofits focused on health equity and the social determinants of health.
- 1,025 employees participated in the company’s 11th annual Volunteer Day, exceeding the goal of 1,000 volunteers, and contributing 2,749 hours to enhance the lives and health of countless people in the communities we serve.