Healthcare Business News

Harvard Pilgrim sees drop in 2013 surplus

By Beth Kutscher
Posted: April 10, 2014 - 3:00 pm ET

Harvard Pilgrim HealthCare, a not-for-profit health plan in New England, reported a decrease in its operating surplus for 2013.

Revenue from premium income (PDF) declined 1% to $2.6 billion, the Wellesley, Mass.-based payer reported. Net income declined to $19.8 million, or 11.8% below the $22.5 million the previous year.

Health plan membership grew about 3% year over year to more than 1.2 million.

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Harvard Pilgrim was not available for comment on its results. But in a news release, Charley Goheen, chief financial officer, said the financials reflect investments into its information technology capabilities as well as strategic initiatives.

The health plan, for instance, formed a care-coordination program called ElevateHealth in partnership with Dartmouth-Hitchcock and Elliot Health System, which is designed to lower costs while improving quality.

It also received a $9 million grant from the Patient-Centered Outcomes Research Institute to head up a consortium that is compiling national data to determine the comparative effectiveness of different treatments.

In addition, Harvard Pilgrim re-entered the Medicare Advantage market in 2013 and plans to expand into Connecticut.

Follow Beth Kutscher on Twitter: @MHbkutscher

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