Newsroom

February 29, 2008
TUFTS HEALTH PLAN RELEASES 2007 YEAR-END FINANCIALS

Watertown, Mass. - Tufts Health Plan today reported net income of $110 million for the year ended December 31, 2007. Net income includes investment income of $66.1 million and an operating income of $50.5 million with revenues of $2.2 billion. For the fourth quarter of 2007, Tufts Health Plan reported net income of $17 million. Net income includes investment income of $17.2 million and operating income of $5.3 million with revenues of $545.9 million. The plan has total net worth of $ 638.8 million and no debt. Membership was 664,000 as of December 31, 2007. As of January 31, 2008, membership was 678,000.

According to Edward Davis, chief financial officer, the health plan's multi-year efforts to offer competitive premiums and grow membership are demonstrating early results. He says, "Tufts Health Plan has exercised fiscal discipline while remaining committed to service and quality."

James Roosevelt, Jr., president and chief executive officer of Tufts Health Plan says, "For the past 18 months, the company has maintained its unrelenting focus on reducing administrative costs together with implementing a thoughtful medical management program that has improved quality and reduced unwarranted medical expense. These combined efforts contribute to our ability to offer competitive premiums, and in large part, we attribute our membership retention and growth to these actions. Taken together, fiscal discipline, prudent investments, administrative cost reduction, evidence-based medical management and membership growth are the reasons we ended last year financially strong."

The results compare to the year-ago period when Tufts Health Plan reported net income of $78 million for the year ended December 31, 2006. Net income includes investment income of $45 million and an operating income of $35 million with revenues of $1.9 billion. For the fourth quarter of 2006, Tufts Health Plan reported net income of $18 million. Net income includes investment income of $17 million and operating income of $1.6 million with revenues of $476 million.

Tufts Health Plan is a Massachusetts-based health plan nationally recognized for its commitment to providing innovative, high-quality health care coverage. The plan supports its members and employers with an array of physician and clinician led medical management programs. These programs use evidence-based medicine to design coverage that supports proven approaches to providing care and improving quality. Tufts Health Plan's HMO and POS are ranked second in the nation and its Medicare Advantage program has been ranked third in the nation by the National Committee for Quality Assurance. Those products also maintain Excellent accreditation status from that organization as well.

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