Major Oregon health insurers end 2015 with losses

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Most Oregon health insurers reported net losses in 2015, and those that came out ahead for the year benefited from strong investment income, according to the Portland Business Journal.

A few Oregon health insurers went against the trend last year and saw financial gains. Regence BlueCross BlueShield of Oregon recorded net income of $25 million, which was largely attributable to a significant investment gain.

Strong investment income also gave Pacific Community Health Plans a boost. The payer reported a $4 million gain in 2015.

The remaining major Oregon insurers did not have as much financial success last year. Here is how the payers stacked up, ordered by net loss.

Providence Health Plan, which has the most individual members in Oregon, reported a $63 million net loss in 2015. That's compared to a $22.3 million surplus the year prior.

Moda Health Plan reported a $49.5 million net loss. In 2014, Moda launched the lowest-cost plans in Oregon for the individual health insurance market created by the Affordable Care Act. The payer's cheap plans brought in more than 100,000 new customers in Oregon alone. Many of Moda's new enrollees were previously uninsured and utilized their new coverage. Therefore, the health insurer at a $33 million loss during the first six months of 2015. The health insurer was briefly placed under regulatory supervision last year, but it plans to remain in business by selling assets.

Kaiser Foundation Health Plan of the Northwest posted a $13.4 million loss in 2015, compared to a profit of $15.6 million a year earlier. The loss was attributable to a change in the way Kaiser reports retirement plan costs, Keith Forrester, vice president of sales, market and business development, told the Portland Business Journal. Without the change, the health insurer would have reported a $60 million surplus.

More articles on payer issues:

CMS finalizes changes to ACA marketplace: 6 things to know
Aetna CEO reverses opinion, now 'likes' ACA exchanges
Fitch: Blue Cross hit hard by ACA losses

 

 

 

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