DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/wpfr3c/michigan_health) has announced the addition of the "Michigan Health Market Review 2013 Reports" report to their offering.
Health Insurers Repeat Strong Profitability; Face Uncertainty as Well as Good Prospects for Growth
HMOs in Michigan again reported strong profits for 2012, but face declining margins on their Medicaid business and uncertainty in prospects for future growth.
These findings and others are reported in Part One of Michigan Health Market Review 2013. This is the 17th year that has analyzed health care payer and provider markets in Michigan. A Part Two report, to be released later this year, will analyze system building by providers, hospital revenues, profitability and utilization using 2012 data, and update enrollment and financial measures for health insurers.
Looking at profitability, other financial metrics and enrollment trends for Michigan's health insurance companies, the following was found:
- For the second consecutive year, Michigan HMOs posted net income above $300 million. Michigan HMOs had net income of $311 million in 2012, or an average margin of 2.6% of operating revenues. Blue Care Network (including its Medicaid HMO) was the most profitable, reporting net income of $167.4 million, or 6.2% of revenues.
- Michigan HMOs made money on all major lines of business, but margins dropped on Medicaid plans. Employer plans were especially profitable this year, but average underwriting margins on Medicaid plans dropped from 2.4% in 2010 to 2% in 2011 and 1.4% in 2012.
- Medicaid enrollment continues to grow and surpassed employer group membership in 2012. Expanding Medicaid eligibility under the Affordable Care Act would like bring coverage to up to 400,000 Michigan residents between 2014 and 2019, but the legislature has not approved Governor Snyder?s expansion plan.
- While enrollment in HMO group plans has declined steadily for the past 10 years, that could turn around in 2014. This spring, 14 HMOs and insurers announced that they would sell plans in the new insurance exchange.
Enrollment in Medicare HMOs, which has been relatively low here, has
surged in the past three years up to almost 200,000 seniors.
For more information visit http://www.researchandmarkets.com/research/wpfr3c/michigan_health