Image: Massachusetts Charter Public School Association
In a 10-year study period, beginning in 1999 and ending last year, the major health insurance companies in Massachusetts finished with a four-fold increase in their surplus reserves. By the end of the study period, their total surplus was $2.5 billion.
Consumers are worried that the soaring premiums over the past decade have gone toward those figures, and made it more difficult to find affordable health insurance. However, industry representatives claim that the reserves are necessary to make up for operating losses over the past year.
The state passed healthcare reform legislation midway through the study period. Its impact on the finances of Massachusetts health insurance providers was not explored by the investigation.