UHA to raise rates 12% amid rising health costs
UHA, also known as University Health Alliance, saw its net income fall in the third quarter as medical costs spiked 8 to 12 percent this year.
The company plans to raise premiums about 12 percent on average for approximately 1,700 employer groups to keep up with rising medical costs, estimated to rise 10 percent next year, said Howard Lee, UHA chief operating officer.
The state's third-largest health plan recorded $756,476 in net income in the quarter, down from $1.2 million in the year-earlier period.
Revenues rose to $28.2 million, up from $25.1 million, while health-care expenses grew to $24.4 million, up from $20.5 million in the third quarter of 2006.
The insurer posted a net operating gain of $858,185, a decrease from $1.6 million in the year-earlier period. Net investment income grew to $415,019, up from $315,846, contributing to net income of $756,476, compared to $1.2 million a year ago.
UHA's reserves stood at $14.6 million at the quarter's end, while membership totaled 42,000.