Fallon Health avoids net losses in 2Q

Grant Welker Worcester-based Fallon Health posted a $2.9 million operating loss in the second quarter ended June 30. Membership grew by 7.5 percent.

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By Emily Micucci

Fallon Health posted a $2.9-million operating loss in the second quarter ended June 30 but broke even on the bottom line, while revenue and membership were up over 2016 levels, the Worcester-based health insurer said Tuesday.

Revenue increased to $331 million, up from $302 million a year earlier, and membership grew 7.5 percent, according to Fallon. The company said the increase was driven by “growth across multiple lines of business.”

Fallon broke even in the second quarter as investment and other income of $2.9 million offset the operating loss up $2.9 million. In the second quarter 2016, Fallon had $100,000 in net income.

Tufts Health Plan of Watertown and Boston-based Harvard Pilgrim Health Care, which have offices in Worcester, also posted earnings this week.

Tufts reported net income of $19.7 million, reversing a $30.9 million net loss a year earlier, and operating income of $5.5 million, up from a 2016 $36.9 million operating loss. Quarterly revenue increased from $1.1 billion to $1.2 billion.

Meanwhile, net income for Harvard Pilgrim increased to $1.6 million in the second quarter, up from $700,000 a year earlier, but its operating loss widened from $700,000 to $1.9 million.

Membership for Tufts and Harvard Pilgrim was close to flat, year over year.

CORRECTION: A previous version of this story incorrectly said Fallon had net income of $2.9 million when actually the insurer broke even because its $2.9 million operating loss was offset by $2.9 million in investment and other income.