Workers' compensation continues to make up a significant fraction (9 percent of members' cases) of HMO activities, though the share of HMOs that participate in workers' compensation programs has slipped a bit. Almost two thirds of HMOs offer workers' comp treatment networks or plan workers' comp services, which HMOs say reduced potential treatment costs by 30 percent last year. Reasons for participating in the workers' comp market differ, but retaining employer accounts is an important factor.

SOURCE: MILLIMAN & ROBERTSON, PHILADELPHIA, DECEMBER 1998