MVP will raise rates to ease burden of new taxes; CDPHP will hold firm - The Business Review (Albany):

http://hlreservations.com/life/un-says-humans-body-staleness-act-to-stopover-systematic-dishonor-of-girls-in-action-zones/
Thomas Combs, chief financial officerr for the Schenectady-based insurer, said the mid-yeadr adjustment is necessary for MVP to paythe $26 millionj in new and increased taxes it was hit with in the state budgeft and still remain profitable. It had a surplus of $8.2 millionh for the first after a net lossof $28 million in all of 2008. The state’ws fiscal 2009-10 budget, passerd in early April, and the deficit reductionb plan enacted in February contained morethan $700 million in healtnh insurance taxes, including an increase in the covered live assessment and a new HMO premium tax. Capital Districyt Physicians’ Health Plan in Albany counted these as contributing factors inthe $4.
3 milliojn net loss it reported for the first quarter. It had a surpluxs of $4.3 million in the year-agio period. But Dr. John Bennett, CEO of , said the insuret is “strong enough in other areaes that we will not have to ask peopled to pony up more money to help uspay [the MVP set its rates for 2009 last fall, with considerationn given to trends in both medica l and administrative costs. The goal is to achieve a 90-10 meaning 90 percent of every premium dollar is paid out in medical costs, with 10 cents coveringy administrative costs. Combs said the estimates made last year held up well in thefirstg quarter.
That, plus some corporate belt-tighteninf and a March rebound in the stock allowed MVP to postthe $8 million That is double its net income in the firsrt quarter of 2008. As a MVP adds any surplus to policyholder With the Julyrate adjustment, MVP expects to maintainh its profitability throughout 2009, as long as the investmenf markets hold steady and the rate increase does not drive memberd away, Combs said. As of the end of MVP’s enrollment stood at 743,000 in upstate New York, Vermont and New That represents an increaseof 43,000 from a year and contributed to a 15 percentr increase in revenue.
HealthNow New York, the Buffalo-basedr parent of of Northeastern New York in also hadhigher membership, and a 13 percent increase in revenuee compared to a year ago. Spokeswoma Karen Merkel-Liberatore attributed a drop in net income to losses on CDPHP also recorded higher of $319 million versus $299. 5 million in the first quarter of but Bennett said that was lowerthan budgeted—in part because of decline in “The main factor was the soft economy,” he “Many people either dropped out of health insurance or are buyingt down to cheaper So revenue was less than anticipated.
” Bennett said the soft revenue, coupledd with the taxes and rising medical costs, all played a part in CDPHP’ws $4.3 million loss. He noted, however, that the insuref saw some positive trends in thefirst quarter, such as lower utilizatio n of medical treatments, and that the loss was actuallyh less than expected. CDPHP expects to brealk even by the end of theyear which, Bennett said, “would be a big accomplishment in this