Study shows yet another increase for HMO care on the forefront.  Employers taking an active role as well with aggressively negotiating with payors as well.  BD

LINCOLNSHIRE, Ill.--(BUSINESS WIRE)--An analysis from Hewitt Associates, a global human resources services company, indicates that initial HMO premium rates1 will increase by approximately 14.1 percent in 2008 — the highest rate increase in four years.

As U.S. companies begin to negotiate HMO plan rates for 2008, data from Hewitt Health Resource™ (HHR) — a Web site that captures HMO rate information for nearly 160 large companies representing more than 1 million employees and annual premiums of nearly $3 billion — shows that initial 2008 HMO rate increases are averaging 14.1 percent, compared with 11.7 percent in 2007 and 12.4 percent for 2006. After plan changes, negotiations and terminations, final average HMO rates increased by 8.2 percent in 2007 (see chart).

Employer Response to Rate Increases

Employers are considering a number of strategies to help mitigate the impact of high HMO premium increases on their health care budgets this year, including:

Shifting Costs to Employees

Moving to Self-Insured Plans

Aggressively Negotiating With Health Plans

Implementing Strategies for Keeping Employees Healthy

HMOs Propose Highest Rate Increases in Four Years, According to Hewitt Analysis


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