Managed Care


PPOs continue to make enrollment gains

MANAGED CARE February 2000. © MediMedia USA
Managed Care Outlook

PPOs continue to make enrollment gains

MANAGED CARE February 2000. ©2000 MediMedia USA

Despite a widening gap between the expense of HMO and PPO plans, more employers than ever offer PPOs — and their employees are taking them up on it. Nationwide, the share of people who have employer-sponsored insurance and who are enrolled in PPOs rose 3 percentage points from 1998 to 1999, while the share enrolled in HMOs remained flat. This occurred even though the average cost of PPOs increased 7 percent per member per year, compared to a 5-percent hike in the cost of an HMO.

Employers are eager to please workers and court prospective employees with rich benefit packages, and are hesitant to pass increased costs along to them in a tight labor market. Instead, purchasers are changing benefit designs to try to cushion increases in the cost of providing health coverage.



4th Partnering With ACOs Summit Los Angeles, CA October 27–28, 2014
PCMH & Shared Savings ACO Leadership Summit Nashville, TN November 3–4, 2014
2014 Annual HEDIS® and Star Ratings Symposium Nashville, TN November 3–4, 2014
Medicare Risk Adjustment, Revenue Management, & Star Ratings Fort Lauderdale, FL November 12–14, 2014
World Orphan Drug Congress Europe 2014 Brussels, Belgium November 12–14, 2014
Healthcare Chief Medical Officer Forum Alexandria, VA November 13–14, 2014
Home Care Leadership Summit Atlanta, GA November 17–18, 2014
HealthIMPACT Southeast Tampa, FL January 23, 2015