HMO Decline Predicted As PPOs Gain Enrollment

Hefty premium increases are expected to slow the annual rate of increase in HMO membership

CEO SUMMARY: Managed care analyst Michael Casey believes HMO enrollment will peak, possibly in 2000. PPOs (preferred provider organizations) are gaining members at an increasing rate. Within California, the provider revolt over deficient reimbursement levels is escalating. Orange County’s largest medical group, with 500 doctors, announced it would not accept new HMO contracts and might

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