HMO profits up, but at a much slower rate

MANAGED CARE September 2005. ©MediMedia USA

Although the rate of increase in HMO profits was much less in 2004 than in 2003, plans continued to see good earnings, according to a study by Weiss Ratings. Overall, the HMOs' profits increased 10.7 percent in 2004, according to data collected from 515 managed care organizations. Weiss points out that this follows a very impressive increase in 2003 of more than 80 percent.

"Earnings growth has leveled off now that premium increases have peaked and insurers are more financially stable," says Melissa Gannon, Weiss vice president.

These plans had increases of more than 100%