The Post-Standard reported in a recent article that Excellus BlueCross BlueShield lost $54 million in 2008 due to high medical expenses, declining enrollment and investment losses. The insurer paid $79 million more than anticipated in member health benefits and lost $70 million on investments because of the Wall Street meltdown. Excellus said its level of reserves fell by $329 million to $858 million at the end of 2008. Reserves are the nonprofit's financial cushion against spikes in expenses or declines in revenue.
Last year's loss was the company's biggest since 1998, when it lost $5.1 million. Excellus made a profit of $84.3 million in 2007. The insurer's enrollment declined last year by about 160,000 members, or 8 percent. The company said that reflects job losses related to the economic downturn, employers dropping coverage and the loss of business to competitors. Excellus raised health insurance premiums an average of 8.3 percent in 2008.
Nonprofits will watch closely for the impact from this financial disclosure. Will 2010 bring significant premium increases? How will nonprofits respond or what can they do? Join the conversation here and offer your own ideas. NYNED and the New York Council of Nonprofits (formerly CCSNYS) will keep you updated and informed. Contact us anytime with your health insurance questions.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment