CONTACT:

Peggy Frank Lyle
VP, Public Relations
MCOL
954.385.2128
pflyle@mcol.mcareol.com 

FOR IMMEDIATE RELEASE

MCOL Releases CA HMO Rate 2000

Suite of California HMO Premium Rate Data and Tools Reveals
Significant Trends and Differences in Premium Rates, Strategies and Methodologies

MODESTO, CA, April 11, 2000 ---Where you live, what health plan and level of benefits you choose, your age, and what size company you work for can all have a huge impact on the premium rates you pay and the annual increases charged by HMOs. These, and many detailed findings have been made available from MCOL’s CA HMO Rate 2000, a suite of California HMO premium rate data and tools just released that provides detailed HMO premium rate intelligence for use by health plans, provider organizations, e-health companies and consultants to the managed care industry. 

MCOL’s CA HMO 2000’s survey of California HMO commercial premium rates indicated comparable average premiums varied up to 37% by county, and up to 34% by HMO. Average commercial HMO premium rates and Medicare HMO premium rates were significantly higher for Northern California counties than for Southern California counties. The difference in cost between comparable average premiums for low-level benefit plans and point of service plans was 122%, and the difference in cost between comparable average age-rated premiums was 164% for a 60-year-old as opposed to a 29-year-old.

Says MCOL President Clive Riddle, “I’ve been involved with health plan premiums for twenty years, and I learned a number of things in analyzing the data from this application, including evolving trends and key market specific information.  This is an invaluable positioning and analysis tool for plans, providers and market analysts who have grown to rely on this product to gain competitive advantage in the California marketplace.”

The key module in the suite is the CA HMO Commercial Premium Rate survey, where MCOL collected almost 18,000 sets of premium rates with effective dates between January and April 2000 from agents and employers throughout the State, and developed a comprehensive database, with average rates by plan, by county broken out by tier, benefit level, group size, and age band. In addition, a premium increase analysis of matched comparable rates from the 1999 survey was conducted. The module provides a sophisticated data query feature that integrates with Microsoft Access or can print or export special reports, and also provides nine pre-set detailed reports in Microsoft Excel format.

Other modules include an Executive Report with 126 pages of key findings and summary data tables; a Commercial Premium Rate Primer, with 205 pages of premium rate management articles addressing trends and methodologies; a database of historical premium PMPM revenues by plan; a database of current and historical premiums in California purchasing pools, a Medicare HMO premium and HCFA payment database, and CA HMO profile.

“We’ve also added a new option, the CA HMO Report, for those who want a lower priced alternative that doesn’t include the databases, but does provide 370 plus pages of significant market and rate reports and information, including the Executive Report, Commercial Premium Rate Primer and CA HMO Profile all in Adobe Acrobat format,” adds Riddle.

CA HMO Rate 2000 is available for the price of $2,495, and the CA HMO Rate Report is available for just $525. Orders and considerable additional information can be obtained by contacting MCOL at 1.209.577.4888 or on the Web at www.mcareol.com/carate2000.htm.

A sampling of the findings from the reports and analysis provided in CA HMO Rate 2000 includes:  

Commercial HMO Premiums by County

The difference between the average premium rates by county varied 37% from the highest (Plumas and Sierra) to the lowest (San Bernardino and Riverside). The ten most expensive average premiums by county were all from rural Northern California counties. Conversely, the ten lowest average premiums by county were all urban counties, with the seven cheapest in Southern California and the remainder in the Bay Area. 

Commercial HMO Premiums by Plan

Plans demonstrate a very different rating strategy and market position for non-age vs. age-rated premium rates. Of the statewide plans, Aetna had the lowest non-age-rated rates, and Health Net had the highest non-age-rated rates. For age-rated rates between statewide plans, Kaiser had the lowest rates and Blue Shield and Blue Cross had the highest rates. 

Change in Commercial HMO Premium Rates from 1999

Individual and Small Group rates increased in excess of 17% and up, while Mid-Size groups in the 13% range, and Large Groups increased in the 8% to 9% range. Non-age-rated rates increased in the 7% range, while single premium age-rated rates increased in the 18% range and increases for other age-rated rate categories were higher. Of the statewide plans, Cigna, Health Net, Kaiser and PacifiCare all experienced single digit premium increases, while several other statewide plans experienced increases in excess of 20%. 

Medicare HMO Premiums by County

Ninety-six different Medicare HMO premium rate and benefit option plans are offered by 17 health plans in various parts of California. The average premium rate paid by the Medicare HMO members in is $37.24 in Northern California and $4.67 in Southern California. 

About MCOL

MCOL is a five-year-old health care Internet company delivering business-to-business managed care resources. MCOL has become the recognized Internet leader in the delivery of knowledge resources to professionals involved in managed care. MCOL business lines include: Membership-based services through Managed Care On-Line and Global Health Resources.com; e-Commerce through the Managed Care Store; and Business e-Solutions. MCOL is based in Modesto, California, with additional offices in Portland, Oregon. For more information, please visit www.mcol.com/about.htm. Also, visit our new Web site at www.definedcare.com. 


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