FCHP Loses $8.5M In Q1
Worcester-based Fallon Community Health Plan lost $8.5 million in the first quarter on revenue of $285 million.
In the first quarter of 2009, the health insurance provider reported a $976,163 profit on revenue of $269 million. FCHP finished 2009 with a loss of nearly $30 million.
In a statement, Charles Goheen, FCHP's CFO, said the compnay's timeline for a return to profitability may need to be reassessed based on the state Division of Insurance's denial of the company's rate increase submissions.
FCHP and other insurance companies are appealing the division's decision.
"...Capping rates threatens the stability of health plans and the structure of our entire health-care system while ignoring the root cause of rising premiums," Goheen said.
Those root causes include higher medical costs, overutilization of services and "the market power of certain providers," Goheen added.
FCHP finished the quarter with 223,512 members, a slight increase over the prior year, and with an operating loss of $1.3 million.
For more on the state's denial of health insurance rate increase requests and FCHP's response, click here and here.
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