MVP Health Care saw declining profits and falling membership in 2012, according to year-end financial results reported Friday.
The Schenectady-based health insurer reported a net income of $25.5 million on revenue of $2.7 billion, amounting to profits of slightly less than 1 percent. The year before, MVP reported a surplus of $32.7 million on revenue of $2.9 billion.
The number of people enrolled in its medical coverage plans declined from 582,000 in January 2012 to 503,000 in January 2013. The company attributed its membership decline to “the slow economic recovery as well as premium pricing pressure due to the increasing cost of health care.”
“Our strategy is to align products, costs and service to respond to the needs of our customers in a rapidly changing industry,” said MVP Health Care CFO Mark Fish in a news release Friday.
In January, MVP Health Care laid off 68 employees as part of a restructuring company officials hoped would keep its health plans affordable. Forty-one of the layoffs occurred in Schenectady, where the company employs about 1,000 between its headquarters at 625 State St. and an office a few blocks away in Center City.
MVP debuted three new product lines last year: NuOptionsSM, a private-label, defined contribution benefits portal; Bridgewell, a deferred deductible plan; and Well-Being ConnectTM, an online portal for Medicare Advantage members.
“MVP is committed to providing products and services that will drive employers and consumers to choose MVP, while taking aggressive steps to control costs,” said Fish in the release. “We continue to develop and introduce new products and product enhancements that we believe will position us well for both the upcoming Exchange and off-Exchange markets.”