ANS releases economic and financial data for the second quarter of 2023 – National Agency for Complementary Health

The National Agency for Complementary Health (ANS) announces that the economic and financial data for the second quarter of 2023 are available on its online portal. EFC for complementary healthwhich has consolidated and reorganized content previously published in three different publications: the Complementary Health Yearbook, the Complementary Health Financial Economics publication, and the Complementary Health Accounting Panel.

Financial information sent to the National Insurance Agency by health plan operators shows that the sector posted a net profit with a value of R$ 2 billion in total for the first six months of 2023. This result is equivalent to about 1.3% of the total revenues accumulated in that period, which amounted to about R$ 154 billion. That is, for every R$100.00 of revenue in the first half of 2023, the sector generated about R$1.3 of profit or surplus.

In the aggregate figures by sectors organized by ANS, the net result for the sector for the first half of 2023 was positive for all sectors: benefits managers recorded a profit of R$ 260.6 million; Exclusive dental operators (OPS OD) R$ 327.4 million; and Medical Hospital (OPS MH) R$1.46 billion.

Following the dynamics already observed in 2022, operators of medical hospitals (the main segment of the sector) ended the quarter with a negative operating result of R$4.3 billion. This operating loss was offset by the record financial result of R$5.9 billion which resulted mainly from its financial investment bonuses, which at the end of the period had accumulated approximately R$105.7 billion.

The main aspect explaining the performance of medical hospital operators in the sector remains the loss percentage, which closed the semester at 87.9% (about 0.9% lower than the percentage calculated for the same period in the previous year). This finding was strongly driven by some of the largest operators in the country and shows that approximately 88% of revenue from monthly fees is “spent up” on assistance expenses. In the complementary health EFC it is also possible to consult the individual performance of the health plan operator.

“We are of the opinion that operators’ profitability generally comes from income generated from financial operations. This situation is undesirable because, at the end of the day, the plan process must be sustainable in itself. So operators need to review their management and analyze what they can improve on.” It is very important to carry out a more prospective actuarial study, analyzing the possible scenarios and impacts”, explains Jorge Aquino, Director of Standards and Qualification of Operators.

It is important to note that the percentage of loss observed in the first two quarters of 2018 and 2019 amounted to about 84%. The higher loss ratio levels post-Covid (since 2021) can be explained more as a result of the slow recovery of plan revenues – mainly from large operators – than the variance in care expenditures due to health service utilization. With regard to this aspect, it should be noted that in the first quarter of this year, the reversal of this trend was observed, as the average monthly fee (adjusted for inflation in the monitored period) increased more than the assistance expenditure per beneficiary (also adjusted for inflation). economic inflation).

This recovery in the financial economic performance of the sector can be seen in several indicators since the fourth quarter of 2022, as evidenced by the Financial Economic Committee: an increase in results (net and operating); Decreased loss ratio and increased net profit margin, among others.

A new panel facilitates consultation and brings new information
Hey EFC for complementary health Displays data from the balance sheet, income statements for the year, revenues and expenses (total, by type and method of payment, nominal and discounted), provisions, asset guarantee, results and various indicators, in order to contribute to a better understanding of the evolution of the segment accounts

It is important to note that the tool provides new data, such as the percentage of operators who have achieved positive results and the percentage of expenses by payment method (by action, payment, etc.).

Write it on the agenda!
To clarify the sector’s results in the first half of 2023 and to present the committee’s new dynamic economic and financial data, ANS will hold a webinar on 9/12. More information about the event will be released soon.

understand the concepts
operational result It is the difference between a health operation’s revenue and expenses (revenue from payments and other operating income less assistance, administrative, marketing, and other operating expenses).

Financial score: It is the difference between financial income and expenses.

net incomeIt is the sum of the operating, financial and equity results plus the impact of taxation and participation.