On the National Level we have seen many larger insurance companies merge. A pair of mergers involve four of the nation’s five largest for-profit health insurance companies—Cigna Corp. and Anthem, Aetna Inc. and Humana Inc.
This got us to thinking about Paul Revere, State Mutual, Harleysville and Central Mass HealthCare. Although Harleysville is not based in Worcester, all of these companies had a stronger presence in Worcester which was diminished after mergers. Actually State Mutual was not a merger, but a take-over by a management team from Fidelity who changed State Mutual to Allmerica that did not work out so well.
Over the past 6 months, we have seen Fallon leave some markets and some very good long term employees leave. Couple that with former leader of Fallon, Eric Schultz, is now the CEO at Harvard-Pilgrim?
If Fallon were to be bought another HMO, like Harvrad-Pilgrim, this would not be a good thing for the City of Worcester.
*** last quarterly results from the Telegram
Fallon Health of Worcester said it lost $2.5 million during the second quarter ended June 30. The insurer, which had 221,588 members, attributed the loss to factors such as the cost of specialty drugs and expenses to shut down the One Care health plan for people enrolled in both Medicare and Medicaid.
Fallon posted $321 million in revenue during the quarter.