According to a report released April 4 by Maine’s Bureau of Insurance, health insurance cooperative Community Health Options experienced two back-to-back months of improved financial performance.
The Portland Press Herald reported that Community Health has over 84,000 policyholders in Maine and New Hampshire.
The health co-op suffered a debilitating $31 million loss last year, despite being the only cooperative in the nation to generate a cash surplus in 2014. As a result of the loss, it was placed under the Bureau’s “enhanced oversight,” which meant that Community Health Options had to report its finances and activities to regulators.
The Bureau confirmed through its report that the co-op’s member claims were consistent with its financial plan for 2016. The report also noted that Community Health Options’ net income exceeded the amount specified in the plan. Additionally, the co-op’s net cash from operations, as of February 29, was better than expected, the Bureau observed.
“It’s certainly good. There’s no question about it,” remarked bureau Superintendent Eric Cioppa about the report’s findings. He, however, warned that the volatile nature of claims can significantly alter an insurer’s financial performance from month to month.
Community Health CEO Kevin Lewis credited the two consecutive months of favorable financial performance to the co-op’s efforts to improve its efficiency.
“We continue to maximize every premium dollar,” Lewis stated. “We’re extremely bullish about 2016 and beyond.”