Fallon posts $3M in Q3 as health plans continue turnaround

Courtesy Fallon Health posted net income of $3 million and an operating surplus of $500,000 for the third quarter ended Sept. 30, signaling a continued turnaround over 2016.

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By Emily Micucci

(Updated) Worcester-based Fallon Health on Wednesday was among three Massachusetts health plans reporting net income and operating gains in the third quarter ending Sept. 30, with Fallon reporting net income of $3 million and an operating surplus of $500,000.

That’s a reversal from a $6.2-million net loss for the same quarter last year, and an operating loss of $8.6 million. Membership for Fallon increased by about 3,000 over 2016.

In an earnings statement, Fallon highlighted its expansion into Berkshire County with a new Medicare products and planned increased capacity for its elder care program at a new site in Webster among its achievements this year.

Watertown-based Tufts Health Plan made gains over last year with third-quarter net income of $42.5 million and a $36.2 million operating profit, compared to net income of $19.1 million and operating income of $13.2 billion in 2016.

Harvard Pilgrim,headquartered in Wellesley, netted $7.8 million and significantly cut its operating loss over last year, according to earnings statements published Wednesday. In the third quarter of 2016, Harvard Pilgrim reported a net loss of $12.7 million, and an operating loss of $20.5 million.

The turnaround year comes after a year of heavy losses for the health plans. Only Blue Cross Blue Shield of Massachusetts, the largest local insurer, finished 2016 with an operating surplus.

Blue Cross Blue Shield, the largest local health plan, posted third-quarter earnings later on Wednesday. Blue Cross had net income of $76.8 million, and operating income of $58.6 million. That's up from $71.1 million and $57.8 million in 2016, and in line with expectations, according to CFO Andreana Santangelo.

This story was updated to include results from Blue Cross Blue Shield of Massachusetts.