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HMOs Costing More, Providing Less

A report shows that Californians enrolled in Medicare HMOs are paying more for coverage while seeing a sharp decline in benefits. The findings appear in the California HealthCare FoundationĀ“s Guide to California Medicare HMOs. The guide found that the overall value of Medicare HMOs has declined steadily in all parts of California.

For example, while most plans offer prescription drug coverage, many cap coverage at just $500 to $2,500 per year. And while benefits have decreased, costs to seniors have gone steadily up, primarily in the form of higher premiums, co-payments and deductibles.

One-third of California´s four million Medicare recipients are enrolled in HMOs, one of the highest rates of any state.