Tufts’s HMO lost money twice after the Partners deal, then recovered

Underwriting margin of Tufts Associated HMO, 2001–2006: what was left of each premium dollar after paying medical claims and administrative costs, in cents. Below zero, the insurance business lost money; above it, the business made money.

Underwriting margin is premium income minus medical claims and administrative costs. Administrative costs are known only for 2005, when they were 10.98% of premiums, and are held at that level in the other years, so those margins are estimates. State-reported loss ratios are rounded to whole percentages. Figures cover the HMO’s commercial and Medicare business together.
Chart: Andrew Tsang / Health Is Other PeopleSource: Massachusetts Department of Public Health annual HMO reports; Massachusetts Division of Insurance examination of Tufts Associated HMO, 2005Get the data