Initial HMO premium rates will increase by about 11.8 percent in 2010, about the same as last year, according to research by Hewitt Associates, a consulting firm. The actual rate increase will less after plan changes, negotiations, and terminations.
Most employers are considering a number of strategies to help mitigate the impact of high HMO premium increases for 2010. These strategies include:
- Consolidating Vendors or Moving to Self-Insurance
- Aggressively Negotiating with Health Plans
- Changing Plan Design
- Improving Employee Health
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