Texas Managed Care Review 2005

Two key trends for Texas HMOs moderated in 2004 and the first half of 2005: the decline in their enrollment slowed as did the rate of premium increases. Even so, HMOs enjoyed stronger profitability across all lines of business in 2004. Hospitals in two metropolitan areas maintained or improved their financial results in 2004.

These findings and others are presented in Texas Managed Care Review 2005, Allan Baumgarten's eighth annual report assessing the Texas health care market. The report, first published in 1998, presents a competitive analysis of health plans and hospital systems in the state. Baumgarten is an independent, Minnesota-based analyst of health care markets. He also publishes annual reports analyzing managed care trends and issues in eight other states: California, Colorado, Florida, Illinois, Michigan, Minnesota, Ohio and Wisconsin. The new report benchmarks Texas HMOs against their counterparts in those states on several key measures. GlaxoSmithKline provided support for Baumgarten?s research in Texas.

Among the report's findings:

• Enrollment in Texas HMOs dropped 12.8% in the 18 months from January 2004 to July 2005.
• HMOs increased their average premium revenues by 7.0% in 2004.
• Texas HMOs improved their profitability in 2004 and 2005.
• Hospitals in Dallas-Fort Worth and San Antonio maintained or improved their net income in 2004; they did not in Houston and Austin.