Higher Prices Will Boost HMO Quarterly Earnings

By Aimee Sullivan Bloomberg News | THE JOURNAL RECORD, July 2, 1997 | Go to article overview

Higher Prices Will Boost HMO Quarterly Earnings


Aimee Sullivan Bloomberg News, THE JOURNAL RECORD


Health maintenance organizations' second-quarter earnings will rise after many raised prices enough this year to cover the rising costs of prescription drugs and hospital visits by their customers.

Oxford Health Plans Inc. and WellPoint Health Networks Inc. will lead the industry's profit growth, helped by mounting pressure to cut U.S. health care costs. United Healthcare Corp. and Healthsource Inc. also will benefit from boosting prices in January.

"This really will be the first up quarter for a lot of HMOs" since the second quarter last year, said ABN Amro Chicago Corp. analyst Peter Costa. "You will see some improved results." Health maintenance organizations, or HMOs, charge a fixed price to provide health care coverage to members for a one-year term, usually beginning in January. The fee is based on their estimate of how much of a plan's services and treatments the members will require during that year. Some HMOs ran into trouble last year when unexpectedly high expenses squeezed profits. The companies weren't able to raise prices to compensate until January and now are beginning to see the results, analysts said. Oxford and WellPoint, though, largely escaped the profit squeeze because they set prices high enough last year. Norwalk, Conn.-based Oxford Health Plans' earnings are expected to rise to 43 cents a share, the average estimate of 18 analysts polled by IBES International Inc., from 28 cents in the year-earlier period. Woodland Hills, Calif.-based WellPoint is expected to earn 75 cents a share, the average estimate of nine analysts, compared with 59 cents a year ago. Earnings for United HealthCare, which analysts said is often an industry bellwether, are expected to rise because the company was able to raise prices while reining in costs. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Higher Prices Will Boost HMO Quarterly Earnings
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.