Texas Says HMOs More Troubled Than Thought

HMOs lost $1.25 billion in 1998 — 45 percent worse than the industry's performance in '97, according to an analysis by A.M. Best, the insurance rating agency. The 600 HMOs studied had a collective revenue increase of nearly $1.2 billion, despite the profitability decline.

Though 1999 began with optimism, these are still difficult times for some plans. In Texas, HMOs lost $414 million in the first nine months of '99, surpassing the $400 million lost in all of 1998. The state insurance commissioner says losses were particularly acute in the third quarter, during which HMOs lost $185 million.

Higher use of medical and pharmacy services are to blame; average per-member, per-month expenses increased nearly $10 from April to June alone, while premiums increased, on average, only $3. Harris Methodist Health Plan tops the list of HMOs that lost money during the third quarter, at $32 million.

Career Opportunities

HAP, a subsidiary of Henry Ford Health System, is a nonprofit health plan providing coverage to individuals, companies and organizations. This executive develops strategies to meet membership and revenue targets through products, pricing, market segmentation and advertising.  Aligns business among Business Development, Commercial Sales, Medicare and Public Sector Programs and Product Development. Seeks to enhance and be responsible for business development and expansion through the development of an effective product portfolio, strong interpersonal relationships and service excellence.

Apply via email to jfedder1@hfhs.org or online at http://p.rfer.us/HENRYFORDlXqAJA

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