As immediate past chair of the Community Health Options Board of Directors, I’m writing to correct an overall misperception generated by the recent Maine Sunday Telegram story about Health Options.

First, however, I’d like to underscore information that is correct:

Health Options has grown rapidly, thanks to the hardworking, immensely talented team that has been brought on since 2012. Total revenues have grown from $187 million in 2014 to $400 million in 2016.

With its entry in the market, Health Options has benefited individuals, businesses and their employees across Maine and New Hampshire with its new brand of benefits, differentiated network and competitive pricing, while creating over 170 sustainable jobs.

The story implied that compensation paid to Health Options executives was excessive. This is not true. The article failed to note that the 2012 990 compensation information cited was for a partial budget year. Since then, there have been modest increases. Further, the 990 information includes all pre-tax compensation, including benefits. Taken as a whole, these are market-competitive.

Health Options management eliminated bonuses for both 2015 and 2016 in light of the anticipated deficits for both years.

Our risk-based capital is 343 percent. Maine Bureau of Insurance Commissioner Eric Cioppa noted that “their risk-based capital number, which is a measure of their financial health, is a ‘healthy’ number.” Additionally, Health Options has about $50 million in capital after adjusting for last year’s loss and money we’ve set aside for the premium deficiency reserve in 2016.

Health Options has sufficient capital. Despite the insinuation that we are “teetering,” we are fully operational, financially stable and working on setting rates for the 2017 plan year.

I personally want to applaud our management team and all of the people of Health Options for their efforts.

Jim Davis

immediate past chair, Community Health Options

Caribou


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