Modern Healthcare August 1, 2020
Health insurers have so far sailed through the COVID-19 crisis relatively unscathed. The twin effects of stable premium income and lower claims are strong enough that health systems that own insurance companies got an income cushion too.
Systems like Presbyterian Healthcare Services, Geisinger Health and ProMedica have noticed their insurance operations are providing a welcome buffer from the effects of COVID-19. Even as patient revenue shrinks, health plan premium revenue has held steady.
And claims expenses are lower, in some cases way lower. “We’ve had a much better experience,” said Clay Holderman, chief operating officer of Presbyterian Healthcare Services in Albuquerque. More than 60% of the integrated health system’s revenue comes from health plan premiums, revenue from which increased 9.5%...