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MVP Health Care finished 2012 with a $25.5 million net income on revenues of $2.7 billion, the health insurance company’s officials said Friday. The 2012 results compare with a surplus of $32.7 million on revenues of $2.9 billion in 2011.
Company officials attribute the declines to a drop in the company’s subscriber base, which they blamed on a slow economic recovery and rising premium costs. As of Jan. 31, MVP’s total covered lives stood at 503,000, a nearly 80,000-member drop from the 582,000 subscribers it a year earlier.
The company hopes to recoup ground it lost last year by offering new products and by taking unspecified aggressive cost-cutting measures, Chief Financial Officer Mark Fish said.
“We continue to develop and introduce new products and product enhancements that we believe will position us well for both the upcoming (state insurance) exchange and off-exchange markets,” Fish said.
The Patient Protection and Affordable Care Act provisions call for states to set up or let the federal government install insurance exchanges in which insurance carriers are supposed to compete to provide coverage for individuals not covered by employer-based group plans. The act calls for exchanges in place on Jan. 1, 2014.
New York plans a state-run exchange in which carriers are to offer plans at four price points and benefit levels ranging from inexpensive basic coverage to more costly benefit-rich coverage.
New group-plan products MVP introduced last year include a defined-contribution plan that lets subscribers choose from a menu of benefits with the option of paying out-of-pocket for extra features and a high-deductible plan that limits employers’ exposure but could add out-of-pocket costs to workers.
Based in Schenectady, the non-profit MVP is the Rochester area’s second-largest health insurer, writing more than 200,000 of the region’s commercial health insurance contracts and Medicare Advantage plans. Its coverage area extends across much of Upstate New York and reaches into Vermont and New Hampshire.
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