NU Online News Service, June 14, 1:03 p.m. – Minnesota health maintenance organizations have been reporting their highest profits since 1993, according to Minnesota Managed Care Review 2002.
Allan Baumgarten, who has been publishing the review for 13 years, says the third consecutive year of double-digit premium increases helped push average commercial HMO premium revenue to $190.20 per member per month in 2001, up 14% from an average of $166.40 per member per month in 2000.
Minnesota HMOs generated a combined profit of $104 million in 2001, and all but two Minnesota HMOs made money, Baumgarten says.
Expansion of Medicaid programs and other state-funded programs aimed at the poor helped push up the HMOs’ earnings.
But Baumgarten notes enrollment in insured, employer-sponsored HMO plans fell to 790,000 in 2001, down 27% from the 1998 enrollment level.
More information about the report is on the Web at http://www.allanbaumgarten.com