HMO rates will increase about 11.7% in 2007, a human resources services firm reports.
Data from Hewitt Associates Inc. also shows despite the slowdown in the annual rate increase, employers are struggling to redesign plans and are splitting more costs with employees.
The 11.7% rise represents the fourth consecutive year of declining HMO rate increases, Hewitt notes. The company reported increases of 12.4% in 2006 and 13.7% in 2005.
In the Southeast and West regions, rates were increasing slightly faster. Preliminary analysis showed an 11% increase for the Southeast in 2007, compared with 9.4% at this time last year, and 13.7% for the West, compared with 10.9% last year.