PACIFICARE: Secure Horizon Seniors Will See Hefty Rate Increase
PacifiCare Health Systems said it may have to raise rates for its Secure Horizons Medicare HMO by up to 9% in some areas because of the new Medicare rate adjustments, the San Francisco Business Times reports. Premiums for other PacifiCare plans will likely see average increases of 3.5%. "While we are pleased with the higher rates, we also recognize that cost trends in a number of medical categories are running at or above this 3.5% level," said PacifiCare CEO Alan Hoops. "We are concerned that if the current disparity between rising medical cost trends and HMO reimbursement levels is not adequately addressed, Medicare beneficiaries will ultimately be left with fewer health care choices," he said. Hoops said his company would help members receive quality, affordable health care and that "he is optimistic that PacifiCare's size will allow it to make any necessary adjustments" to do so (Bole, 3/29 issue).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.