Tufts Health Plan earns nearly $25m

2d-quarter results top Mass. insurers

Though Blue Cross Blue Shield of Massachusetts and Harvard Pilgrim Health Care have many more members, Tufts Health Plan yesterday reported the strongest second-quarter results of any major Massachusetts health insurer.

Tufts said it earned operating income on its health plan of $16.6 million, on revenue of $578 million. The company also earned investment income of $9.1 million, producing net income of nearly $25 million.

By contrast, Blue Cross Blue Shield showed an operating loss of $3.2 million from its healthcare operations, on revenue of $1.7 billion. Combined with investment income of $34 million, the plan had net income of $30.8 million for the quarter. Blue Cross also said it has lost 45,000 members this year.

Edward Davis, chief financial officer of Tufts Health Plan, said in a statement, "Our investment income, like everyone's, has been negatively affected by the economy. However, our net income remains strong due to our ability to retain clients and gain new members."

Harvard Pilgrim, the state's second-largest health insurer, said it lost $5.3 million on its health insurance business, but made $5.9 million on investments, leaving it with $600,000 profit for the quarter. Revenue was $642.9 million.

James DuCharme, chief financial officer for Harvard Pilgrim, said the results were in line with expectations.

Fallon Community Health Plan said it lost $2.8 million on operations, offset by a $4 million investment gain, for net income of $1.2 million. Revenue was $250 million. Membership at Fallon - the state's fourth-largest insurer - increased nearly 10 percent, to 208,479, compared with the year-ago period.

Jeffrey Krasner can be reached at krasner@globe.com.