North Carolina HMOs earned $39.3 million on net premium revenue of $1.3 billion in the first six months of 2002, reversing a loss of $19.1 million in the year-ago period, according to the North Carolina Department of Insurance. As a group, the HMOs posted a 3.1% profit margin and spent 11.1% of net premium revenue on general administration expenses. UnitedHealthcare of North Carolina, which is owned by UnitedHealth Group, Minneapolis, led the way with profits of $18.8 million on net premium revenue of $347.4 million. Meanwhile, North Carolina Blue Cross and Blue Shield, Chapel Hill, which is seeking to convert to for-profit status, reported losing $1.8 million on $207.5 million in net premium revenue in its HMO business, although the Blues plan earned $11.3 million on nearly $1 billion in net premium revenue overall. The state insurance department has scheduled three public hearings for October on the Blues conversion plan. The improved overall performance in part reflects the shutdown last year of the Wellness Plan, a 29,000-member Medicaid HMO that lost $11.1 million in the first six months of 2001. The HMO was owned by Carolinas HealthCare System, Charlotte. -- by Vince Galloro
N.C. HMOs record 3.1% profit in six-months' period
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