sharp rise in us hmo premiums expected in 2003

PharmacoEconomics & Outcomes News 368 - 22 Jun 2002 ■ Preliminary health maintenance organisation (HMO) premium rate increases are averaging 22% in the US for 2003, compared with the 15.3% rise in premiums, on average, reported in 2002, according to data obtained from consulting firm Hewitt Associates. The rise continues the trend of double digit growth in healthcare costs, forcing companies to alter their health plan designs and shift more of the cost to employees. Employees are also being asked to pay more for prescription drugs. ‘Companies cannot afford these increases’, says Hewitt’s Health Management Practice e-business leader Mindy Kairey. ‘Unfortunately, this means consumers should expect to pay a lot more for health care’, she adds. Hewitt Associates. HMO Rates Continue to Rise at Double Digit Pace Media Release : 6 Jun 2002. Available from: URL: http:// www.newstream.com 809005964 1 PharmacoEconomics & Outcomes News 22 Jun 2002 No. 368 1173-5503/10/0368-0001/$14.95 Adis © 2010 Springer International Publishing AG. All rights reserved

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Page 1: Sharp rise in US HMO premiums expected in 2003

PharmacoEconomics & Outcomes News 368 - 22 Jun 2002

■ Preliminary health maintenance organisation(HMO) premium rate increases are averaging 22% inthe US for 2003, compared with the 15.3% rise inpremiums, on average, reported in 2002, according todata obtained from consulting firm Hewitt Associates.The rise continues the trend of double digit growth inhealthcare costs, forcing companies to alter theirhealth plan designs and shift more of the cost toemployees. Employees are also being asked to paymore for prescription drugs. ‘Companies cannot affordthese increases’, says Hewitt’s Health ManagementPractice e-business leader Mindy Kairey.‘Unfortunately, this means consumers should expect topay a lot more for health care’, she adds.Hewitt Associates. HMO Rates Continue to Rise at Double Digit Pace MediaRelease : 6 Jun 2002. Available from: URL: http://www.newstream.com 809005964

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