Michigan Medicaid HMOs see gains in operating incomes, decreases in net incomes

Operating income for the 12 Medicaid HMOs in Michigan rose 295 percent to $163.1 million from $41.2 million, according to Crain's Detroit Business. Enrollment increased by 21 percent to 1.6 million, mostly due to the expansion of the Medicaid program, according to the publication, citing data from the 2015 Michigan Health Market Review.  The 19 Michigan HMOs increased enrollment by 14.8 percent from 2.7 million to nearly 3.1 million the year before. Despite these gains, overall net income decreased 20 percent last year for all HMOs to $170 million from $212 million in 2013. Humana Medical Plan, for instance, lost $4.3 million. Speaking about the declines in profitability, Allan Baumgarten, who published the report, says "A big chunk of the losses are in the individual business," and that "they believe they underpriced (policies). This is why they are asking for higher prices (above 10 percent) for 2016." Article

 

Suggested Articles

With large numbers of Americans skeptical of a COVID-19 vaccine, CVS views its pharmacists as playing a key role in assuaging fears, said its CEO.

The COVID-19 pandemic is driving enormous demand for virtual mental health care services. Here is how much utilization has increased during COVID-19.

Blue Cross NC is launching two new digital programs targeting smoking cessation and Type 2 diabetes management next month at no cost to members.