$226,000 profit through June 30, compared to $8.5 million loss through same period in 2015
BOSTON - Minuteman Health (www.minutemanhealth.org) today announced a profit of $226,000 through June 30 of 2016, compared to an $8.5 million loss over the same six-month period last year. The company posted the gain despite its decision to remove $1.8 million in risk corridor payments owed to Minuteman by the federal government. The payment is legally due and would have flowed directly to Minuteman’s bottom line, but the company determined that the likelihood of collecting during the current plan year was low and excluded the funds from financial assessments.
Minuteman’s membership in Massachusetts and New Hampshire increased by 82 percent compared to the same period last year, with 25,649 members through June 30 compared to 14,117 in June 2015.
Minuteman CEO Tom Policelli attributed the company’s solid operating performance to its conservative financial pricing and reserving, its strategic network growth of lower cost providers, and its ability to offer quality products at value price points for consumers.
“We started Minuteman with a specific market approach and strategy, and we have maintained the operating discipline to adhere to that approach and strategy. These results show that we’re well positioned for a long-term presence in order to give consumers better choices at better prices,” Policelli said.
Policelli said that the company’s financial results would be stronger and its premiums would be lower if it didn’t have to reserve a substantial percentage of premium to cover payments required under the federal government’s Risk Adjustment formula. Minuteman sued the federal government earlier this month, charging that the Risk Adjustment formula illegally punishes small, more efficient companies and hurts consumers seeking lower-priced coverage plans.
The lawsuit alleges that Risk Adjustment program has illegally deprived Minuteman and its members of millions of dollars.
“Without doubt, the Risk Adjustment program as configured today is the single greatest challenge to us being able to present to consumers even lower premiums than we already offer. Over the last two years, $20 million of our members’ premium dollars have been taken away due to this federal program that is widely acknowledged to need an overhaul. Without change, this year could be another $20 million. We’re hopeful that our lawsuit will help accelerate much-needed improvements to the program,” Policelli said.
Minuteman Health, Inc. is a member-governed, non-profit health maintenance organization (HMO) committed to removing inefficiencies from today’s health insurance system to provide high-quality care, cut administrative costs and reduce premiums for individuals and businesses in Massachusetts and New Hampshire.
Minuteman Health’s In-Plan Provider network includes over 11,300 hospitals, physicians, and specialists who provide high quality care at lower costs in Massachusetts and New Hampshire. Updates on Minuteman Health’s evolving provider network can be found at www.minutemanhealth.org.
Minuteman is marketed in Massachusetts through its website, brokers, Health Services Administrators (www.HSAinsurance.com) and the Massachusetts Health Connector. It is marketing in New Hampshire through its website, brokers, and the Federal Healthcare Exchange.
CHOICES members are non-profit as well as investor-owned, health system-sponsored and independent, and newer entrants as well as companies with decades of experience as members of their local communities. The group came together to examine what gaps may exist between the policy intent and the practical reality of the ‘3Rs’ programs today. Such gaps are to be expected in any launch of a new methodology, and CHOICES looks forward to continuing to work productively with CMS to replace old assumptions with the current data.
CHOICES founding members include Minuteman Health, Health New England (Massachusetts), HealthyCT (Connecticut), Land of Lincoln (Illiniois), Melody Health Care (Colorado), New Mexico Health Connections, Evergreen Health (Maryland), Bright Health Plans (Minnesota), Cox Health Plans (Missouri), Medical Associates Health Plans (Iowa), and the National Alliance of State Health CO-OPS (NASHCO).
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