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Article: HMOs: profit but no joy in Mudville. (health maintenance organizations) (Alternative Health Care)
- Article from:
- National Underwriter Property & Casualty-Risk & Benefits Management
- Article date:
- October 15, 1990
- Author:
CopyrightCOPYRIGHT 1990 The National Underwriter Company. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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HMOs: Profit But No Joy In Mudville
The health maintenance organization industry is finding itself in a defensive mode these days.
State legislatures have raised HMO solvency requirements on the heels of heavy losses from 1986 through 1988.
During that three-year period, the HMO industry lost over $2 billion, according to American International Healthcare, a Rockville, Md., managed care consulting firm.
HMOs, in turn, increased their premiums in double-digit terms in 1988, 1989 and 1990 to stabilize their organizational foundations.
But the sound of negative employer reaction to three years of double-digit HMO premium increases ...