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The Business of
Health Care Report For the first time since the emergence of managed care, HMO enrollment dropped between 1999 and 2000. The double-digit growth rate of the mid-1990s has dwindled to a negative growth rate of -0.4 percent. Medicare HMOs continue to have their problems, as more insurers drop plans or withdraw from markets because it's not profitable. Patients are finding themselves suddenly without a plan, leaving a bad taste for Medicare Plus Choice in the future, even though the Bush administration expresses optimism. In the private sector, companies of all sizes are looking for ways to end their role as intermediaries between employees and health insurance companies. Many employers are now eyeing defined contribution health plans. Under this scenario, employers give employees funds to purchase their own insurance in the open marketplace. One of the factors influencing employer hesitation about defined contributions is perceived employee dissatisfaction. In a tight labor market, employee satisfaction is increasingly on the minds of employers and their benefits managers. Existing managed care plans will face aggressive bargaining from health systems for more attractive contracts and higher reimbursement. Risk sharing between providers and managed care plans has lost its glamour, and fewer capitated arrangements are expected for the future. And some employers will be forced to opt for self-insurance in the absence of reasonable plan options for their employees. If you have comments on health care or suggestions for topics to be addressed on this program, e-mail me at DougHawthorne@TexasHealth.org. Sources: Futurescan 2001: A Millennium Forecast of Healthcare Trends 2001-2005; Health Care Financing Administration Stay tuned to our weekly Business of Health Care reports here on TexasHealth.org and on News Radio 1080 KRLD. ©
2001 Texas Health Resources |
