(Wellesley, MA) August 14, 2020 – Harvard Pilgrim Health Care today reported net income of $40.9 million and operating income of $54.5 million on revenue of $691.6 million for the second quarter of 2020 ending on June 30, 2020. For the same period in 2019, the health plan reported net income of $36.2 million and operating income of $28.9 million on revenue of $756.1 million.
Year-to-date, the health plan reported net income of $19 million and operating income of $37.2 million on revenue of $1.4 billion. For the same period in 2019, it reported net income of $65.4 million and operating income of $53.2 million on revenue of $1.5 billion.
Harvard Pilgrim’s total membership for the second quarter of 2020 stands at 1,123,805.
“As the public health crisis continues to present many challenges, Harvard Pilgrim remains committed to doing everything it can to support our members, customers, communities and care delivery system partners,” said Michael Carson, president and CEO of Harvard Pilgrim. “Now more than ever, our focus remains on the health and well-being of our members and the communities we serve. Many people have deferred care over the past several months, and it is incredibly important that they not neglect their health. Health care providers have implemented stringent safety precautions, and we encourage our members to seek routine and preventive care including checkups, health screenings and vaccinations.”
"There is much volatility in the health care ecosystem as the pandemic continues,” said Charley Goheen, chief financial officer of Harvard Pilgrim. “While we saw a steady increase in health care claims as the second quarter progressed, there is still a tremendous amount of uncertainty surrounding health care spending and its impact for the remainder of 2020. In the second quarter, Harvard Pilgrim saw a significant increase in pharmacy spending. Attrition in our commercial business has been low and less than expected. We will continue to closely monitor COVID-19 costs and the pandemic’s overall impact on medical spend.”
In the second quarter, Harvard Pilgrim announced important steps to enhance access to care and provide relief and support to members, customers, independent primary care physicians and community health centers, including:
• Fully-insured Employer Groups regardless of size or location, will receive a 15% credit on their September premium invoice ($30 million total).
• Medicare Supplement Members will receive a 15% credit on their September invoice ($2 million total).
• Medicare Advantage members’ copays for all primary and specialty care office visits will be waived until the end of 2020.
• Independent Primary Care Practices will have access to $3 million in financial support to assist with their practices. To support the provider community, Harvard Pilgrim provided more than $40 million in financial advances to providers throughout the region.
• Community Health Centers, focusing on those providing care to predominately Black and Brown communities, as well as centers that provide care for vulnerable populations, have received $3 million to support equity and equality in accessing health care, and to address health disparities.
• Continued COVID-19 testing and treatment cost-share waiving (copays, deductibles, co-insurance) and no out-of-pocket expense for telehealth services
Harvard Pilgrim may implement further actions to provide premium relief, as well as additional support initiatives, throughout the remainder of the year.
Harvard Pilgrim recently announced that its offices will remain closed for large-scale return until early January 2021 and employees will continue to work remotely to meet the health plan’s obligations to its customers and communities. The company will continue to evaluate office re-entry as the pandemic evolves.
About Harvard Pilgrim Health Care
Harvard Pilgrim and its family of companies provide health benefit plans, programs and services to more than 3 million customers in New England and beyond. A leading not-for-profit health services company, we guide our members – and the communities we serve – to better health. Founded by doctors over 50 years ago, we’re building on our legacy. In partnership with our expansive network of doctors and hospitals, we’re improving health outcomes and lowering costs through clinical quality and innovative care management. Our commitment to the communities we serve is driven by the passion of the Harvard Pilgrim Health Care Foundation. Through its work, low- and moderate-income families are gaining greater access to fresh, affordable food — a cornerstone to better health and well-being.