HMOs earn $7B in first half of 2005

SBJ Staff

Posted online March 19, 2006 | 11:00 pm

Health-maintenance organizations performed well in early 2005. The nation’s HMOs reported a $6.98 billion profit for the first six months of 2005, an amount $1.2 billion higher than reported for the same period of 2004.

That figure represents a 21.2 percent increase.

“Despite a slowdown in earnings growth, industry profitability remains strong,” said Melissa Gannon, vice president of Weiss Ratings Inc., in a news release.

Weiss Ratings Inc. is an independent provider of ratings and analyses of financial services companies, mutual funds, and stocks.

HMOs reporting the largest year-over-year dollar increases in net income included Horizon Healthcare Services Inc., Oxford Health Insurance and Capital Advantage Insurance Co.

Of the 503 HMOs reviewed by Weiss using second quarter 2005 data, 76 were upgraded and 12 were downgraded. Notable upgrades were: Community Insurance Co., from B+ to A-; Mercy Health Plans of Missouri Inc., from B+ to A-; and Total Health Care Inc. from C+ to B-. [[In-content Ad]]