Aetna HMOs Losing Money in New England Market, According to Mark Farrah Associates.Business Editors KENNEBUNK, Maine--(BUSINESS WIRE)--June 8, 2001 MCOs continue to aggressively compete for a lasting position in the New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. HMO HMO health maintenance organization. HMO n. A corporation that is financed by insurance premiums and has member physicians and professional staff who provide curative and preventive medicine within certain financial, market. But not all of them are making money. In the long run, national MCOs, such as Aetna and CIGNA CIGNA CG (Connecticut General Life Insurance Company) INA (Insurance Company of North America) will support HMO operations in the region only if they see a return on their investment. Meanwhile, New England-based MCOs, including Harvard Pilgrim, ConnectiCare and Tufts, are in the midst Adv. 1. in the midst - the middle or central part or point; "in the midst of the forest"; "could he walk out in the midst of his piece?" midmost of assessing their future capabilities in the industry. They will ultimately choose to be a long-term HMO player, transition HMO business to non-HMO product lines or opt to sell their business to a competitor. Higher premiums and better underwriting performance improved the bottom line for most of New England's managed care organizations in 2000. Oxford, ConnectiCare and CIGNA operated some of the most profitable HMOs in the region. Most Blue Cross and Blue Shield Blue Shield A US not-for-profit health care insurer that is a reimbursement intermediary for physicians. Cf Blue Cross. affiliates, including Anthem-owned plans, also generated profits from HMO business. HMOs operated by Aetna U.S. Healthcare U.S. Healthcare is a now-defunct healthcare company. The logo had an apple. The merger with Aetna In 1996, the company merged with Aetna, calling it Aetna U.S. Healthcare. The U.S. Healthcare apple logo was next to the Aetna name, and U.S. Healthcare under it. U.S. in the region continue to suffer from persisting financial problems. Aetna has been unable to offset losses and its New England HMO business has not been profitable. Harvard Pilgrim, although not completely out of the red, demonstrated a sharp turnaround last year. Who is Making Money? In 2000, Blue Cross Blue Shield affiliates, with the highest share of the HMO market, made the most money. Blues-owned HMOs netted $90.8 million in profits. Anthem BCBS BCBS Blue Cross/Blue Shield BCBS Basel Committee on Banking Supervision BCBS Barre Center for Buddhist Studies BCBS Bay City Baptist School BCBS Bishop Cotton Boys School (Bangalore, India) BCBS Bar Code Business Software of Connecticut earned $34.5 million in net income while HMO Blue of Massachusetts earned $$36.2 million. The Maine BCBS HMOs, now owned by Anthem, were the only Blues plans that did not net a profit in 2000. Tufts Health Plans, CIGNA, United HealthCare and Health Net also netted substantial income on New England HMO business last year. These findings are excerpts from the latest release of the New England HMO Monitor, published by Mark Farrah Associates. Most managed care organizations as well as pharmaceutical and other health care companies doing business in New England rely on the Monitor to keep informed about industry developments. Contact Mark Farrah Associates for subscription information or to inquire about single report purchases. About Mark Farrah Associates Mark Farrah Associates, based in Kennebunk, Maine, is a leading source for managed care business intelligence. |
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