Business
HMO profits up
NEWS IN BRIEF — Posted Sept. 20, 2004
HMOs in the United States saw profits increase by 86% in 2003, says a survey by Weiss Ratings Inc.
Earnings for the 502 health plans evaluated by Weiss soared from $5.5 billion in 2002 to $10.2 billion last year. California-based Kaiser Foundation Health Plan had a $1.1 billion increase in profits, which accounted for about 20% of the gain in the industry's overall profit. That increase resulted from new regulations that permitted consolidation in the plan's year-end financial statements for its hospitals, physician groups and other units.
Blue Cross Blue Shield plans taken together had a 63% increase in profit, from $3.3 billion in 2002 to $5.4 billion last year, Weiss said.
HMOs in California ranked first in earnings increases, with an aggregate gain of $774 million, while Oregon HMOs performed most poorly, with an aggregate loss of $68.5 million.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/09/20/bibf0920.htm.
