Insurers are the Big Winners in 2011

Does this make sense to you? While many Providers are struggling to survive insurance companies’ earnings were ten times their 2010 earnings. Blue Cross Blue Shield of Massachusetts alone reported a net of 136.1 million in 2011. Their reported earning s in 2010 was 13.4 million. Blue Cross Blue Shield was not the only one to experience a successful year as Published on FierceHealthPayer ( Their article in this topic also mentioned the following: Harvard Pilgrim Health Care reported a 2011 net income of 93.5 million, up from 49.6 million the prior year. Part of Harvard Pilgrim’s success, according to CEO Eric Schultz, was its ability to lower the average premium increase base rate to 1.8 percent for April reinsurance renewals, compared to 3.8 percent a year ago. Additionally, Tufts Health Plan posted a net income of 87.6 million last year, an increase from 58.8 million in 2010. And Fallon Community Health Plan’s 38.5 million net income reversed it loss of 8.8 million the prior year. Pay rates for these companies CEOs were also reported: • Blue Cross CEO Andrew Dreyfus received 874,000, up from 800,000 in 2010 • Tufts CEO James Roosevelt Jr. received 1.7 million, up from 1.2 million in 2010 • Harvard Pilgrim CEO Eric Schultz received 1.2 million, up from 795,000 in 2010 • Fallon CEO W. Patrick Hughes, received 810,000, up from 649,000 in 2010 I don’t know too many of us catching these kind of checks in the present economy yet all efforts I presently see to reduce costs in the healthcare field are aimed at the healthcare professionals. What’s wrong with this picture? You really don’t have to be a genius to figure out what is happening: • Insurance rates are increasing: • Insurers are renegotiating Provider Contracts (reducing fees most of the time): • Fewer people are seeking medical care as they are trying to save money. The real question should be not whether it makes sense to you but what are you going to do about it. The answer is that there is not a one size fits all solution but there is definitively work to do. While the answer may not be clear to most there are “real” experts in the field that can help you. So if you are ready to start gives us a call or e-mail us. This article was written by Dr. Jose Delgado, CEO and President of Taino Consultants Inc.