Neighborhood Health Plan of Rhode Island reported a $1.7 million loss for 2017, and the insurer's chief executive officer said Friday he is concerned about proposed cuts in the state's Medicaid budget.
The nonprofit insurer relies heavily on revenues from Medicaid, the government health insurance program for low-income residents. In 2017, 95 percent of Neighborhood's revenues came from Medicaid, according to the latest filing.
Marino said Gov. Gina Raimondo's fiscal 2019 budget proposal to cut Medicaid funding by $166 million is cause for worry.
"As one of the top Medicaid health plans in the nation, our mission is to deliver quality care to some of Rhode Island’s most vulnerable folks,'' Peter M. Marino, Neighborhood's President and CEO said in a statement. As a non-profit, he said, "we operate on very slim margins, and recent State rate reductions had a significant negative impact on Neighborhood. We are very concerned about the Governor’s FY 2019 budget proposal, because it would also have far reaching negative impacts on Medicaid recipients and Neighborhood.''
Marino added that the company's $1.07 million loss is "on $1.3 billion in revenues and our reserves remain well above regulatory requirements."
Last year's loss follows Neighborhood's reported $19.7 million in net income for 2016.