HealthPartners reports continued growth
HealthPartners
HealthPartners saw continued growth in health plan membership in 2012, low medical trends and solid financial performance as reported in results filed with the Minnesota Department of Commerce.
HealthPartners membership now totals more than 1.4 million individuals in Minnesota and Western Wisconsin. Since 2005, HealthPartners membership has grown by 60 percent; in the past year alone, membership grew by 4.2 percent.
According to the financial filings, HealthPartners continues to be a national leader in keeping administrative costs low, with administrative expenses at 5.5 percent of revenue (excluding taxes and assessments).
For the third year in a row, HealthPartners experienced low medical trend increases. This is a result of low health care utilization, as well as several new affordability strategies. Projects and initiatives that contributed to low medical trend include virtuwell® 24/7 online clinic, which saves patients $88 per episode; engagement in health and well-being programs; support and coordination services for members with chronic illnesses; a reduction in hospital re-admissions; and high-technology imaging management.
Because trend has been so low, HealthPartners was able to hold commercial plan premiums down for 2012. Many groups received rate decreases, and the average rate decrease overall was 1 percent on a per member, per month basis.
The state introduced competitive bidding in the metro area to select the highest quality and lowest cost health plans to serve PMAP and MNCare beneficiaries. This process produced savings for the state while offering high quality services and access for people enrolled in state public programs. HealthPartners was one of two plans selected by the state in all seven counties, based on high quality scores and low costs. Our 2012 results reflect our bid performance and the impact of the new expansion of the Medical Assistance Program. 2013 rates reflect additional adjustment based on these results and experience.
The combination of growth in the number of people served plus lower than expected health care costs produced an operating margin for the organization of 4.4 percent.
“Our organization is focused on improving health, experience and affordability,” said Dave Dziuk, HealthPartners Chief Financial Officer. “Our continued growth gives us the opportunity to deliver on our mission for the benefit of our members, patients and community.”
HealthPartners paid more than $90 million in taxes and assessments to the State of Minnesota, a total that includes the medical care surcharge, the Minnesota Comprehensive Health Association, premium taxes and income tax.
Founded in 1957, HealthPartners is the largest consumer-governed, non-profit health care organization in the nation. It is dedicated to improving the health of its members, patients and the community. HealthPartners provides a full-range of health plan services including insurance, administration and health and well-being programs. It serves more than 1.4 million medical and dental health plan members nationwide, and is the top-ranked commercial plan in Minnesota. Its Medicare plan has the highest rating (five stars), which only 11 plans in the nation achieved in 2013. Since its combination with Park Nicollet in 2013, its care system includes more than 1,700 physicians; five hospitals; 50 primary care clinics; 21 urgent care locations; and numerous specialty practices in Minnesota and western Wisconsin. In addition, Stillwater Medical Group, part of the HealthPartners family of care, includes 80 physicians serving the St. Croix Valley region. HealthPartners Dental Group has more than 60 dentists and 21 dental clinics. HealthPartners also provides medical education and conducts research through its Institute of Education and Research.