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
January 5, 2010 at 1:17 am
[...] to divisions and regions of the country that are already ahead of the Senate’s target (like these Florida HMOs). An even simpler approach would be to simply pay more in medical costs than they are paying [...]
January 5, 2010 at 1:49 am
[...] to divisions and regions of the country that are already ahead of the Senate’s target (like these Florida HMOs). An even simpler approach would be to simply pay more in medical costs than they are paying [...]
January 7, 2010 at 11:02 pm
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