HMO Enrollment Stabilizes, Number of HMOs Continues to Drop
(PRWEB) September 21, 2001
ST. PAUL, MN - HMO enrollment stabilized during the second half of 2000, while the number of HMOs continued to drop, according to InterStudy Publications's latest Competitive Edge HMO Directory. This enrollment stabilization marks a change from declines reported for 1999 and the first half of 2000. Despite this enrollment stabilization, the number of HMOs operating in the United States continues to fall due to industry consolidation and the exiting of unprofitable plans.
As of January 1, 2001, there were 79.5 million HMO enrollees. This represents a 0.3% increase from the 79.3 million enrollees as of July 1, 2000, and a shift from preceding periods' enrollment decreases. The year between January 1, 1999 and January 1, 2000 marked the first-annual decrease in HMO enrollment. HMO enrollment peaked at 81.1 million as of January 1, 1999, and fell by 0.9% to 80.4 million as of January 1, 2000. HMO enrollment dropped again by 1.4% during the first half of 2000.
While enrollment appears to be stabilizing, the number of HMOs operating in the United States continues to drop. Only 541 full-service HMOs operated as of January 1, 2001, down from 560 as of July 1, 2000. The number of HMOs has dropped steadily over the past two years due to unprofitable plans exiting the market and merger, acquisition and consolidation activity among existing plans. The following chart depicts changes in HMO enrollment and the number of HMOs since enrollment peaked in January 1999.
Recent years' decrease and then stabilization in HMO enrollment mark a stark change from HMO growth during the previous decade. HMO enrollment grew steadily during the 1990s.
The Competitive Edge HMO Directory (version 11.2) is compiled using data collected directly from HMOs through the twice-yearly InterStudy National HMO Census, providing a comprehensive look at the HMO industry as of January 1, 2001. The Competitive Edge HMO Directory profiles full-service HMOs across the nation, presenting enrollment figures, service areas, addresses, key personnel, and pharmacy benefit management companies for each HMO. Enrollment figures are broken down by lines of business, including group/commercial, Medicare, Medicaid, and open-ended (point-of-service) products, as well as several other categories. The Competitive Edge HMO Directory also chronicles changes in the HMO industry, with extensive listings of mergers and acquisitions, plans no longer doing business, and other consolidations.
The Competitive Edge HMO Directory is used by health care analysts around the country to track competing HMOs and compare HMO growth in various states or regions. The Competitive Edge HMO Directory identifies key players in a given state and presents each HMO profile in a consistent manner for easy comparison. It also provides information on changes in providers and enrollment for the past three years to allow for extended comparisons.
Detailed analysis of the trends in HMO enrollment is forthcoming in the HMO Industry Report 11.2, which will be available for purchase in October. The HMO Industry Report will examine changes in HMO enrollment by product line, provide lists of the top 25 largest and fastest growing HMOs and detail HMO enrollment by state. It will also include an analysis of HMO premiums and other financial information including administrative and medical expenses.
The InterStudy Competitive Edge series is published semi-annually by InterStudy Publications, a publications firm specializing in research and reports for market-driven health care. The HMO Directory is the first of this three-part series on HMOs. Part II, The HMO Industry Report, analyzes enrollment changes and HMO characteristics associated with these changes. Part III, The Regional Market Analysis, examines market structure and dynamics of metropolitan markets served by HMOs. The complete InterStudy Competitive Edge series (Parts I, II and III) is available from InterStudy for $610 (prepaid). Each book is also sold separately. The Competitive Edge HMO Directory and Industry Report are available for $245 each (prepaid) and the Regional Market Analysis is available for $275 (prepaid). If you have any questions or would like to place an order, please call 800-844-3351, or visit our web site at www. interstudypublications. com.
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