HMOs, PPOs to raise premium rates in 2011

Increases in group health renewal prices for large and midsize plans could average about 10 percent for health maintenance organization (HMO) plans and about 12 percent for preferred provider organization (PPO) plans in January 2011, National Underwriter reports.


In addition to typical increases due to utilization and cost experience, these rate hikes also likely reflect some changes resulting in the implementation of new health reform requirements, according to the Milliman 2010 Group Health Insurance Survey of about 60 carriers serving large and midsize employer groups.

When asked to discuss initiatives they will use in response to the health reform requirements, insurers said they will try to cut broker commission payments. Insurers also want to share more risk with providers, use more provider quality incentive programs, and give plan enrollees more information about provider fees, reports National Underwriter.

Almost all insurers reported they are preparing to participate in health insurance exchanges in 2014, notes Milliman.

To learn more:
- read the National Underwriter article
- see the Milliman press release