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HMOs reach highest rate increase in five years

According to Aon Hewitt, health maintenance organization plans will have the highest premium increases in five years, as the average 2011 HMO rates increased 9.8 percent after plan changes, negotiations and terminations.

By Amanda McGrory-Dixon | Updated on December 01, 2010

According to Aon Hewitt, health maintenance organizationplans will have the highest premium increases in five years, as the average 2011 HMO rates increased 9.8 percent after plan changes, negotiations and terminations. This is the highest rate increase since 2006, when the rate grew 10 percent. In 2010, final rate increases were 9.4 percent and 9 percent in 2009.

High-deductible health plans and preferred provider organization plans, which typically have lower premiums than HMO, have become more widely used by employees over the last few years. This is especially true among employees who are young, single and overall healthy. However, HMOs usually provide greater benefits at a higher price. This tends to attract those who may use health care more frequently or require better coverage.

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