The nation's HMOs recorded $2.3 billion in profit during the first quarter of 2003, up 60% from the same period in 2002, according to a report by Weiss Ratings, Jupiter, Fla. The profit increase of $854 million was evidence that HMOs continued to thrive by increasing premiums while reducing costs, according to the firm. "However, the boundless rate hikes, which helped the industry regain its strength the past several years, will eventually wane, giving consumers some much-needed relief," company Vice President Melissa Gannon said. Eight in 10 HMOs earned a profit in the first quarter of 2003, compared with six in 10 during the first quarter of 2001, the firm said. -- by John Morrissey
HMOs' profits rose in first part of 2003: report
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.