Hefty HMO price hikes expected in 2002 - Industry Scan - health insurance costs to go up by 18.2 percent next year - Brief Article

Healthcare Financial Management, Dec, 2001

With healthcare costs expected to hit double-digit levels in 2002, corporations are bracing for a new round of premium increases despite a weakening economy. In a recent report, financial services firm UBS Warburg predicts health insurance costs will go up by 18.2 percent next year, which may drive companies to further reevaluate their healthcare delivery programs.

Short of dropping health coverage completely, many corporations are turning to cost-containment companies to take control of their healthcare costs. Cost-containment companies negotiate agreements with all types of healthcare payers and with national and local provider groups, including self-funded groups, for deep discounts in return for access to their client base.