Media Release

For: Immediate Release
Date: November 10, 2003
Contact: Bruce Cryan (401) 222-5123

Health Department Issues Analysis of RI Health Insurers’ Finances

Today, the Rhode Island Department of Health (HEALTH) released the Health of Rhode Island’s Health Insurers (2002), a financial performance report on the four health insurers domiciled in the state. These include Blue Cross of Rhode Island, Coordinated Health Partners, United Healthcare of New England and Neighborhood Health Plan.

The Report demonstrates that, compared to their national counterparts in 2001, Rhode Island health insurers:

• showed greater profitsincreased in value fasterproduced stronger Balance Sheets
• held more in unpaid claims
• financed with less debt
• maintained significantly larger reserves, and
• operated more efficiently.

"This Report paints a favorable picture of how Rhode Island’s Health Plans are operating financially" said Patricia A. Nolan, MD, MPH, RI Director of Health. "It adds a new component to our review of the performance of RI’s healthcare system."

The Report is available on HEALTH’s website.

The report uses statutory data (information the health insurers are required to file annually with the state) to examine eight financial measures in four general categories (profitability, liquidity, leverage and efficiency). Seven of these measures were benchmarked to the national and regional experience, as well as to the experience in Massachusetts and Connecticut.

Author Bruce Cryan notes that this report complements a previous publication, "The RI Commercial Health Plans’ Performance Report" released in April 2003. That report analyzed the enrollment, finances, utilization, clinical measures (e.g. immunization rates), access, satisfaction and utilization review characteristics of health plans in Rhode Island. (also available at www.HEALTH.ri.gov