North Shore-LIJ in­sur­ance unit sees rev­enue surge, but posts loss

Modern Healthcare - - REGIONAL NEWS - —Bob Her­man

Rev­enue within the health in­sur­ance di­vi­sion of North Shore-Long Is­land Jewish Health Sys­tem tripled in the past year, and the Great Neck, N.Y.based or­ga­ni­za­tion has no in­ten­tions of slow­ing down in­vest­ment in its payer oper­a­tions.

North Shore-LIJ launched its com­mer­cial health plan, CareCon­nect, in 2014. The com­pany sells in­di­vid­ual health poli­cies on New York’s in­sur­ance ex­change and also sells group plans to em­ploy­ers. CareCon­nect cov­ered more than 26,000 mem­bers as of June 30, com­pared with 10,000 at the same time in 2014.

In the first half of 2015, pre­mium rev­enue from CareCon­nect and the sys­tem’s Med­i­caid man­aged long-term­care plan jumped to $95.3 mil­lion, com­pared with $31.2 mil­lion in the year-ago pe­riod, ac­cord­ing to the latest unau­dited fig­ures. How­ever, the bot­tom line suf­fered: the plans lost $12.4 mil­lion in the first half of 2015, giv­ing them a neg­a­tive op­er­at­ing mar­gin of 13%.

North Shore-LIJ CEO Michael Dowl­ing told Mod­ern Healthcare this spring that in­sur­ance losses were “fully ex­pected” and that be­com­ing both a provider and a payer was a long-term strat­egy.

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