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Article: HMO rates dip along with costs
- Article from:
- Chicago Sun-Times
- Article date:
- January 26, 1986
- Author:
CopyrightCopyright (null) Chicago Sun-Times. (Hide copyright information)
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When Illinois Bell's benefit director Jack Herron decided that
health maintenance organizations covering his employees were costing
too much, he decided to do something about it.
He called in consultant Jim Stansbury and told him his mission
was to negotiate lower rates with HMOs.
By accepting the mission, Stansbury became a pioneer of sorts.
Because federally certified HMOs are required to offer a rate based
on the demographics of an entire community, they have always said
they had little discretion over prices. They cannot offer First
National Bank of Chicago a higher rate than they offer Continental
Bank despite the differences in the amount of health-care services
they consume. So ...