HMOs Had Bountiful First Quarter 2002

December 18, 2002 ( - The nation's HMOs enjoyed a whopping 162% profit increase during the first quarter of 2002 over the year before, a Florida research company said.

Weiss Ratings said the HMO industry recorded an $868.1 million first-quarter 2002 profit, up from $536.6 million in the same period the year before.

First-quarter industry profits were more widespread among the 441 HMOs studied by Weiss, with 73% reporting a profit during the period, compared to 60% of the plans reporting a profit during the same period in 2001.

However, just 3% of the HMOs, or 14 companies, contributed $267 million, or 50%, to the industry’s first-quarter profit increase.

Weiss said the five HMOs with the highest first quarter 2002 profit increase are:

  • Kaiser Foundation Health Plan, 38.9%
  • Aetna Health Inc. of Pennsylvania, 33.9%
  • Blue Cross of California, 30.8%
  • Aetna Health Inc., of New Jersey, 25.2%
  • California Physicians Service, 23.3%.

The Weiss Safety Ratings are based on an analysis of a company’s risk-adjusted capital, five-year historical profitability, quality of investments, liquidity, and stability. The latter category combines a series of factors including asset growth, premium growth, strength of affiliate companies, and risk diversification.