BOSTON — All three of Massachusetts’ largest health insurers reported substantial gains in the second quarter as patients kept paying health-insurance premiums but largely didn’t seek out services, the Boston Business Journal reported.
A temporary shutdown of elective surgeries and outpatient care sidelined much of the typical spending that would have happened in the second quarter. The result has been insurers retaining millions of dollars.
Blue Cross Blue Shield of Massachusetts reported $150.1 million in operating income on $2 billion in revenue in the second quarter, ending in June. That compares to a $16.5 million operating loss on $2.1 billion in revenue the same time last year.
The revenue was so high that Blue Cross announced it would rebate $110 million to 1.2 million members in the form of credits on a future bill.
Tufts Health Plan also reported $37.6 million in operating income on $1.44 billion in revenue in the second quarter. In the same period last year, the insurer reported $25.6 million in operating income on $1.43 billion in revenue.
Harvard Pilgrim Health Care reported a $54.5 million operating income on $691.6 million in revenue in the second quarter, compared to $28.9 million in operating income on $756.1 million in revenue in the same period last year.
“There is much volatility in the healthcare ecosystem as the pandemic continues,” said Charley Goheen, chief financial officer of Harvard Pilgrim Health Care, in a release. “While we saw a steady increase in healthcare claims as the second quarter progressed, there is still a tremendous amount of uncertainty surrounding healthcare spending and its impact for the remainder of 2020.”