NU Online News Service, Oct. 25, 2004, 2:10 p.m. EST
Health maintenance organizations expect their renewal rates to slow next year, while employers are showing keener interest in consumer-driven health plans, a new survey finds.[@@]
The 13th annual survey of group health insurance by Milliman Inc., Seattle, found a projected 2005 renewal rate increase of 11% for HMOs, down from 15% reported in the 2003 survey.
PPOs, which Milliman included in its survey for the first time, anticipated a 13% increase.
What Your Peers Are Reading
One reason for the HMO rate slowdown: administrative expenses dropped to 12% of premium, the lowest level ever reported in the survey, Milliman says.
The Milliman 2004 Group Health Insurance Survey covered HMOs and fully insured PPOs that serve the commercial large group employer market.