Managed Care

PPOs continue to make enrollment gains

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.


Subscribe to Our Newsletters

Monthly table of contents

Be notified as each issue of Managed Care is available online.

Biweekly newsletter

Recent topics have included:

  • Doug Jones and the ACA, Epic misses a White House meeting, and man caves for man-flu sufferers
  • CVS-Aetna deal may trigger merger mania, Johns Hopkins criticized for lack of asthma prevention, & Columbia sees free-ride future for all of its med students

PTCommunity news

New drug approvals, clinical trials, drug management. Three times per week.