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.