Fallon Health posts $6.8M loss
Worcester’s Fallon Health has posted a net loss of $6.8 million for fiscal 2015, citing continued pressures on the industry and rising drug prices.
The insurance company reported $1.2 billion in revenue for the year, down approximately $100 million from the previous year, and an operating loss of $17.5 million. Membership was also down slightly for the company, dropping from 225,832 in 2014 to 222,328 at the close of the 2015 fiscal year.
R. Scott Walker, Fallon executive vice president and chief financial officer, attributed the loss on the year because of the rising costs of specialty and generic drugs, in addition to the continued impacts of the Affordable Care Act's risk adjustment program where insurers of healthy populations pay sizeable fees to cover insurance for riskier patients.
The other three largest nonprofit health insurers in Massachusetts -- Harvard Pilgrim, Blue Cross Blue Shield of Massachusetts and Tufts Health Plan -- also reported operating losses of $79 million, $30 million and $139,000, respectively, in 2015.
Fallon Health was founded in 1977 and offers a variety of Medicaid, Medicare and commercial products.
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