HMO profits were up again last year, although the increase is not as large as in previous years, a new survey by Weiss Ratings finds. Overall, health maintenance organization profits were up 10.4 percent in 2004, rising to $11.4 billion. Those numbers, while impressive, were not as good as the spectacular 80 percent jump the group reported in 2003. Humana saw its profit rise $164.9 million, an increase of 167 percent. Highmark reported a profit of $213.6 million, an enormous leap of 1,700 percent over the loss it posted in 2003. BlueCross BlueShield of California, with earnings of $658.2 million in 2004, saw an increase of 43 percent. In the last few weeks the big health insurers have reported even better mid-2005 results.
- see this story from the South Florida Business Journal
PLUS: The Wall Street Journal reports that earnings statements from major insurers this quarter indicate that medical costs are slowing slightly nationwide, a trend which may help employers. Story (sub. req.)