Florida Managed Care Review 2005

Enrollment in Florida HMOs decreased in 2004 and again in the first half of 2005. However HMO profitability was higher than ever, with the help of six straight years of double-digit premium increases. Except for Tenet Health, hospitals in the state also reported strong net income in 2004.

These and other findings are presented in Florida Managed Care Review 2005, Allan Baumgarten's eighth annual report analyzing the Florida health care market. The report, released here today, presents a competitive analysis of health plans and hospital systems in the state. Baumgarten, an independent analyst of health care markets, also publishes annual reports analyzing managed care trends and issues in eight other states: California, Colorado, Illinois, Michigan, Minnesota, Ohio, Texas and Wisconsin. The new report benchmarks Florida HMOs against their counterparts in other states on several key measures such as HMO premium trend, profitability and use of capitation.

Among the report's findings:

• Enrollment in Florida HMOs dropped by 431,000 members or 15.8% in the 18 months from January 2004 to June 2005.
• HMOs increased their average premium revenues by 10.1% in 2004, the sixth year of double digit increases.
• In 2004, Florida HMOs had their most profitable year ever.
• Medicare HMOs have been very profitable and are likely to increase enrollment.
• Except for Tenet Health, hospitals reported strong financial results in 2004.