PacificSource Reports 2021 Results
Health insurer reports operating results and stable capital balance
(SPRINGFIELD, Ore.) March 1, 2022 — PacificSource announced consolidated financial results for the year ending December 31, 2021, reporting a Net GAAP loss of $25M, on $3.1B of revenue. These results include Net Income across all lines of business from 2021 of $5M and an After-Tax 2022 Premium Deficiency Reserve of $30.5M for PacificSource Health Plans. The company maintained a strong capital position through these turbulent times, with Net Equity remaining stable from December of 2020 to December of 2021 at $516M for the consolidated enterprise.
“While financial performance was flat on a consolidated basis, PacificSource recognized increasing utilization and COVID-19 testing and treatment costs throughout the 3rd and 4th Quarters. This escalation in claims expense put significant pressure on earnings in our commercial line of business, which reported an underwriting loss of $76M. We anticipate those trends to moderate, but continue in 2022,” said Peter Davidson, executive vice president and CFO of PacificSource. “Accordingly, we have recognized a Premium Deficiency Reserve for PacificSource Health Plans’ 2022 activity to capture future claims costs that are projected to be in excess of available premiums. It’s also important to note that we have built a widely diversified company and significantly increased our level of capital reserves over the last decade, which has placed PacificSource in an excellent position to support our members and communities into the future.”
PacificSource is an independent, not-for-profit community health plan serving the Northwest. Through its subsidiaries, the company provides a wide array of fully insured, administrative service, and government health plan products. These subsidiaries include, but are not limited to PacificSource Health Plans, PacificSource Community Health Plans and PacificSource Community Solutions.
Founded in 1933, PacificSource is based in Springfield, Ore. with local offices throughout the state, as well as in Idaho, Washington and Montana. The PacificSource family of companies employs more than 1,500 people, serves more than 600,000 individuals, and has 3,900 employer clients throughout the Northwest. For more information visit PacificSource.com.