California´s largest HMO´s are getting richer even as rising medical costs strain their customers.
Financial figures filed with state regulators show the HMO´s stockpiled reserves totaling $3.1 billion as of September 30th. That´s $2.2 billion more than they need to meet standards set by the California Department of Managed Health Care.
The five HMO´s are Kaiser Foundation, Blue Cross, Health Net, Blue Shield and PacificCare.
Officials with the HMO´s say policyholders should take comfort in the healthy reserves — saying they are a sort of rainy day fund.
But critics say the large sums are a sign of runaway greed.
HMO´s have been raising their rates substantially in the last two years – citing the rising cost of health care. The trend has squeezed employers and taken an even bigger chunk out of consumers´ wallets.
But many doctors believe HMO prosperity is coming at their expense and the large reserves have caused state regulators to say the plans can invest more in better services.
This post was last modified on 01/31/2009 5:36 pm