I found the attached chart, sent via Managed Care OnLine’s “Daily Factoid,” interesting. Why? Because these top Florida HMOs are already well ahead of compliance standards with the Senate’s proposed limit of 15% administrative costs for health plans (or close to to achieving them, depending on how the accounting standards are finally written).
Take a look:
- Florida HMOs Medical Loss Ratio and Administrative Costs as a Percent of Premium Revenue,
- 1st Quarter 2004 – 1st Quarter 2009
| Medical Loss Ratio | Administrative Costs as a % of Premium Revenue | |
| 1st Qtr 2004 | 82.0% | 10.9% |
| 1st Qtr 2005 | 81.1% | 11.3% |
| 1st Qtr 2006 | 82.6% | 11.7% |
| 1st Qtr 2007 | 82.2% | 9.9% |
| 1st Qtr 2008 | 83.5% | 10.2% |
| 1st Qtr 2009 | 84.5% | 10.0% |
Source: Florida Hospital Association (FHA) Eye on the Market: HMO Indicators Report, 1Q04-1Q09
