Four of the largest nonprofit health insurers in Massachusetts reported losses in 2015, according to the Boston Globe.
The four insurers — Blue Cross Blue Shield of Massachusetts, Fallon Health, Harvard Pilgrim Health Care and Tufts Health Plan — blamed the rising cost of prescription drugs and fees charged under the Affordable Care Act for their financial slump.
Here is how the payers stacked up last year, ordered by operating loss.
Harvard Pilgrim fared the worst last year, reporting an operating loss of nearly $79 million. Under the ACA, health insurers that cover relatively healthy populations pay fees to subsidize the insurance and care of riskier patients. In 2015, Harvard Pilgrim's risk adjustment payments were $40 million, "a substantial increase" from 2014, a spokeswoman told the Boston Globe.
Blue Cross Blue Shield, the largest insurer in Massachusetts, posted an operating loss of more than $30 million in its core insurance business last year. The loss was attributable to several factors such as the high price of new medications for chronic conditions, according to the report.
Fallon Health reported an operating loss of $17.5 million in its insurance business in 2015. That's compared to an operating loss of $11.5 million in 2014.
Tufts Health Plan ended 2015 with a small operating loss of $139,000. However, the insurer expects to be challenged by rising prescription drug prices in 2016, according to the report.
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