April 11, 2008
Mark Farrah Associates Keeps an Eye on Health Plan Financials

KENNEBUNK, Maine--(BUSINESS WIRE)--Determining whether revenue will cover expenses and allow for a reasonable profit is a pressing issue for any business. This is especially true for health plans, given the rise in healthcare costs. Mark Farrah Associates (MFA) analyzed 2002 through 2006 statutory financial data from 431 health plans nationwide to see if premium revenues were meeting expenses and allowing for a net underwriting gain.

MFA found that while plans have been doing a good job in recent years managing costs, aggregate underwriting profits declined in fiscal year 2006. Evaluation of health plan revenue and expense line items reported in the 2006 Annual Statements indicated that expenses have begun to outpace growth. It will be interesting to see if profits continued to decline in 2007. A comprehensive look at this industry trend is offered in an online MFA Healthcare Business Strategy™ brief. To view this report and sign up for a free subscription to Healthcare Business Strategy™ visit www.markfarrah.com. MFA will analyze data from the 2007 Annual Statements and release an updated assessment of underwriting performance in May 2008.

Health plans file statutory data on a quarterly and annual basis with state insurance regulators. Financial statements are prepared using statutory accounting rules as defined by the National Association of Insurance Commissioners. Analysis of this information proves useful in understanding and measuring health plan performance. For companies seeking comprehensive market data, MFA offers the Health Coverage Portal™, a unique online application that integrates NAIC statutory and MFA self-insured datasets. The Health Coverage Portal™ provides easy access to financials, PMPM comparisons, ratios, membership and market share. Subscribers have unlimited access to data updates and analytics for 12 months.

For companies that need health plan membership and market share and only limited financials, MFA offers Health Plans USA™. This 50-state database gives subscribers access to market share data, underwriting snapshots and plan contact information for all U.S. health insurance companies.

About Mark Farrah Associates (MFA)

Mark Farrah Associates (MFA) is a data aggregator and publisher providing health plan market data and analysis tools. Our products include Medicare Business Online™, the Health Coverage Portal™, Health Insurer Insights™, and Health Plans USA™.

Contacts:
Mark Farrah Associates
Faith Gillman, 207-985-8484
www.markfarrah.com