Illinois HMOs in 2002 were profitable on operations for the first time since 1997, in spite of declining enrollment, according to a new report by Minneapolis-based managed-care analyst Allan Baumgarten. Illinois HMOs earned a total of $77 million on revenue of $6.2 billion, even as enrollment decreased for the second consecutive year, hitting about 2 million in 2002 compared with a peak of about 2.4 million in 2000. HMO Illinois, owned by Blue Cross and Blue Shield of Illinois and the state's largest HMO, added 57,000 new members since 2000, bringing its total membership to 831,351. The plan earned $43.6 million. Among commercial plans, premiums rose 15.2% to an average of $179.45 per member per month in 2002 from $155.72 per member per month in 2001, Baumgarten said. "We're seeing a trend away from capitation contracts and a return to discounted fee for services," he said. -- by Mark Taylor
Ill. HMOs record operating profit in 2002
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