Harvard Pilgrim cuts losses by 87%
Harvard Pilgrim Health Care reported Monday a net loss of $4.7 million in its first quarter, a significant improvement over the $34.9 million it lost in the first quarter 2016.
The Wellesley-based insurer -- with operations in downtown Worcester -- reported an operating loss of $5.5 million on revenue of $788.3 million for the first quarter, compared to a $36.6 million operating loss on revenue of $749.7 million in the first quarter of last year. In 2016, Harvard Pilgrim experienced a sharp increase in both medical utilization and pharmacy costs, and continued to experience challenges related to the Affordable Care Act, the company said.
Harvard Pilgrim had a planned loss due to investments in expansion markets, including Medicare Advantage and the state of Connecticut, said company CEO Charley Goheen.
“While we are reporting an operating loss for the first quarter of 2017, we are seeing that our medical management initiatives are positively impacting medical trend,” said Goheen. “We continue our work to negotiate pharmacy contracts that are based on real-life patient outcomes and help to drive better medical outcomes for our patients while working to hold down the escalation in pharmacy costs.”
Membership for the first quarter of 2017 was down to 1,273,552 from 1,316,016 in the first quarter 2016.
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