Washington’s Top Health Insurers Fared Well Compared to Oregon in 2015

The top 10 health insurers in Washington fared well compared to their Oregon counterparts last year. A recent article in The Lund Report revealed a crippling blow in profits for Oregon’s healthcare insurers with more than $219 million in cumulative losses reported in 2015. 

In comparison, the Regence health insurers in Washington and Utah both ended the year in the green. Although Regence BlueShield (Washington) showed a 31 percent decrease in net income from the previous year, the insurer brought home more than $11.8 million in profits. Regence BlueCross BlueShield of Utah reported an impressive turnaround, ending 2015 with more than $3.1 million in profits after suffering a slightly greater amount (more than negative $3.3 million) in net income losses over the prior year.

Membership faltered slightly in 2015 for both the Washington and Utah Regence health insurer groups, down 10 and 4 percent respectively. While hospital and medical benefit costs were down (8 and 9 percent respectively), Regence BlueShield ended with healthy cash reserves of more than $34 million (down 7 percent from 2014). However, Regence BlueCross BlueShield of Utah ended 2015 with case reserves in the red at negative $2.4 million (compared to positive $8.9 in cash reserves for 2014).

Although many of the major Washington-based health plans showed declining net income in 2015 compared to the prior year, most ended well into the safe zone. In addition to Group Health’s stellar performance, Community Health pulled out of a spiraling decline of net income losses from the prior year with a dramatic upswing and turnaround, securing more than $39 million in profits for 2015.

The table below compares year-end net income for the Washington-based top health insurers between 2015 and 2014. The Lund Report gathered data from annual financial reports filed with the Washington State Office of Insurance Commissioner.

Washington Health Insurers

2015

2014

 

Net income/loss

Net income/loss Group Health Co-operative $118,350,583.00 $112,491,729.00 Community Health Plan $39,637,673.00 -$40,138,362.00 UnitedHealthcare of Washington $14,961,963.00 $22,478,351.00 Premera Blue Cross GRP $12,888,330.00 $65,944,470.00 Regence Blueshield $11,803,493.00 $17,113,117.00 Asuris Northwest Health $5,052,281.00 -$2,573,890.00 LifeWise Health Plan of Washington $4,949,808.00  $7,126,418.00 KPS Health Plans (partial year in 2015) $610,601.00 $1,885,730.00 Health Alliance Northwest Health Plan -$161,639.00 -$282,527.00 Molina Healthcare -$3,384,549.00 -$24,625,458.00

The annual reports by Washington health insurers offer a glimpse of the financial ups and downs with declining year-over-year net income for some, and recovery for others. A similar picture emerges for cash reserves and enrollment. The following snapshots include comparable financial data between 2015 and 2014 available from Washington’s top health insurers, along with Regence BlueCross BlueShield of Utah.

Premera Blue Cross

Snapshot:

• Total members: 687,390 enrolled, up 9 percent from 2014.
• Net income: $12,888,330, down 80 percent from $65, 944, 470.
• Cash & equivalents: $41,154,589, down 70 percent.
• Hospital and medical benefit costs: $ 2,402,200,629, up 17 percent.
• Total salaries, wages, other benefits: $335,564,622, up 7 percent.

Molina Healthcare

Snapshot:

• Total members: 581,943, up by 17 percent from 2014.
• Net income loss: negative $3,384,549, following loss of negative $24,625,458.
• Cash & equivalents: $317,879,156, down 30 percent from 2014.
• Hospital and medical benefit costs: $994,849,450, up 24 percent.
• Total salaries, wages, other benefits: $79,458,829, up 18 percent.

Regence BlueShield

Snapshot:

• Total members: 402,725, down 10 percent from 2014.
• Net income: $11,803,493, down 31 percent from previous year.
• Cash & equivalents: $34,696,106, down 7 percent.
• Hospital and medical benefit costs: $875,584,425, down 9 percent.
• Total salaries, wages, other benefits: $173,764,259, roughly the same.

Group Health Cooperative

Snapshot:

• Total members: 355,452, slight decrease of 1 percent from 2014.
• Net income: $118,350,583, up 5 percent from prior year.
• Cash & equivalents: $156,919,058, up 19 percent.
• Hospital and medical benefit costs: $1,653,624,191, down 1 percent.
• Total salaries, wages, other benefits: $124,711,800, down 15 percent.

Community Health Plan

Snapshot:

• Total members: 311,447, down 11 percent from 2014.
• Net income: $39,637,673, recovering from net loss of negative $40,138,362.
• Cash & equivalents: $171,990,284, down 32 percent from 2014.
• Hospital and medical benefit costs: $890,600,318, down 4 percent.
• Total salaries, wages, other benefits: $38,371,089, up 17 percent.

UnitedHealthcare of Washington

Snapshot:

• Total members: 300,056, up 6 percent from 2014.
• Net income: $14,961,963, down 33 percent from prior year.
• Cash & equivalents: $11,956,819, down 93 percent from $180,352,909.
• Hospital and medical benefit costs: $998,020,595, up 5 percent.
• Total salaries, wages, other benefits: $70,776,009, up 14 percent.

Regence BlueCross BlueShield of Utah

Snapshot:

• Total members: 236,399, down 4 percent from 2014.
• Net income: $3.116,723, followed by a loss of negative form prior year of negative $3,309,376.
• Cash & equivalent: negative $2,426,367, up from positive $8,936,329.
• Hospital and medical benefit costs: $538,980,698, down 8 percent.
• Total salaries, wages, other benefits: $78,681,943 in 2015.

Lifewise Health Plan of Washington

Snapshot:

• Total members: 71,327, down 6 percent from 2014.
• Net income: $4,949,808, down 31 percent from $7,126,418.
• Cash & equivalents: $12,600,466, down 43 percent from prior year.
• Hospital and medical benefit costs: $170,886,297, down 10 percent.
• Total salaries, wages, other benefits: $17,806,425, down 26 percent.

Asuris Northwest Health

Snapshot:

• Total members: 36,229, down 18 percent from 2014.
• Net income: $5,502,281, recovery from loss of negative $2,573,890.
• Cash & equivalents: $9,578,116, down 10 percent from prior year.
• Hospital and medical benefit costs: $58,449,226, down 15 percent.
• Total salaries, wages, other benefits: $9,289,709, down 11 percent.

Health Alliance Northwest

Snapshot:

• Total members: 4,027, up 16 percent from 2014.
• Net income loss: Negative $161,639, following a loss of negative $282,527.
• Cash & equivalents: $10,754,703, up from $3,894,024.
• Hospital and medical benefit costs: $17,159,746, up 15 percent.
• Total salaries, wages, other benefits: $983,890, up 27 percent.

KPS Health Plans in Bremerton, Washington transitioned its business and operations into Group Health Options, Inc (GHO) at the end of 2015 consequently full year financial data was not available for comparison with 2014. The insurer served approximately 23,000 members mostly in Washington’s northwestern counties Kitsap, Mason, Jefferson and Clallam.

Financial and enrollment data for Providence, Kaiser, and Bridgespan were either reported in The Lund Report’s March 3 publication, or full-year snapshot data was unavailable for comparison with other Washington insurers.