HMO

Article Abstract:

Health maintenance organizations are predicted to implement the biggest jumps in health premiums in a decade by 2001. The increases range from 10% to 13% for larger employers and 20% or more for smaller ones which is causing frustration among consumers and raising questions about the future of health insurance. Although some believe that managed care failed, otherres believe that it reduced insurance premium increases for a few years, mainly by cutting payments to doctors and hospitals and requiring strickt oversight of expensive drugs and treatments. Without managed care, the total amount spent on health care would have been higher.

Market information - general

Ruling helps HMO stock, but more cases in wings

Article Abstract:

The US Supreme Court's landmark decision on the Pegram vs. Herdrich case resulted in an increase in the valuation of health maintenance organization (HMO) stock prices. The ruling, which absolved the HMOs of the practice of offering incentives to doctors who keep the cost of patient care at a minimum, is seen as a vindication of the roles of managed care companies in solving the rising cost of healthcare. However, HMOs are still facing over a dozen lawsuits arising from the use of such incentives.

Financial analysis

HMO industry looks within, mulls change

Article Abstract:

Health maintenance organizations (HMOs) are considering strategic changes to alter the opinion of the public on managed health care. The American Association of Health Plans has sent letters to 1,000 health insurers, encouraging them to follow the example of UnitedHealth Group, which has ceased requiring doctors to obtain permission for most referrals, tests or hospitalization. The letter stated that the move by UnitedHealth creates an opportunity for many managed health care businesses.

Strategy & planning