California Sees Drop in HMO Members, Jump in Medicaid Managed Care
The number of Californians enrolled in HMOs has declined by more than one million since 2007, according to new data from the Department of Managed Health Care, Payers & Providers reports.
The DMHC findings show that Anthem Blue Cross' HMO enrollment dropped by 568,000, or about 16%, between June 2007 and June 2009. During the same time period, PacifiCare's HMO rolls declined by about 500,000, or about 33%.
Cheryl Randolph, spokesperson for PacifiCare, said the recession might account for some of the HMO losses. She added that some HMO members also might have switched to PPO coverage.
Medicaid Managed Care on the Rise
At the same time that HMO enrollment has shrank, California's Medicaid managed care plans have seen an uptick in membership.
For example, Inland Empire Health Plan has seen a 25% enrollment increase, rising from 320,000 in 2007 to 400,000 in June of this year. During the same time period, Cal-Optima's enrollment increased by 15% from 331,000 to nearly 379,000.As a result of these conditions, some industry experts predict that commercial health plans will strive to regain their momentum in the public health insurance market (Payers & Providers, 11/19). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.