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Weiss Warns Seniors Not to Join Medicare HMOs

Wed, 11/15/2000 - 12:00am — Karen Stevenson
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Among the 237 HMOs reviewed by Weiss Ratings that opened their doors to Medicare beneficiaries in recent years, 147 will have fully or partially abandoned the business by December 31, leaving only 90 HMOs that are continuing to maintain their current Medicare business. Weiss reports that among these remaining 90 HMOs, 37 are losing money. They lost a total of $645 million in 1999, plus another $82 million in the first quarter of 2000.

"Seniors who have been dropped from their HMO should not rejoin another," commented Martin D. Weiss, Ph.D., chairman of Weiss Ratings, Inc. "The latest Medicare withdrawals greatly narrow the viable choices available to seniors down to just a handful of profitable and financially healthy Medicare HMOs, and even many of these may soon be dropping out of the business."

Whether they have been dropped from an HMO or not, Weiss Ratings recommends that seniors seriously consider returning to Medicare while buying a good Medigap policy. However, consumers should buy only those benefits they truly need and shop around carefully to avoid overpricing, which is still common in the industry.

Weiss issues safety ratings on more than 16,000 financial institutions, including life and health insurers, Blue Cross Blue Shield plans, property and casualty insurers, banks, and brokers.

Among the 237 HMOs reviewed by Weiss Ratings that opened their doors to Medicare beneficiaries in recent years, 147 will have fully or partially abandoned the business by December 31, leaving only 90 HMOs that are continuing to maintain their current Medicare business. Weiss reports that among these remaining 90 HMOs, 37 are losing money. They lost a total of $645 million in 1999, plus another $82 million in the first quarter of 2000.

"Seniors who have been dropped from their HMO should not rejoin another," commented Martin D. Weiss, Ph.D., chairman of Weiss Ratings, Inc. "The latest Medicare withdrawals greatly narrow the viable choices available to seniors down to just a handful of profitable and financially healthy Medicare HMOs, and even many of these may soon be dropping out of the business."

Whether they have been dropped from an HMO or not, Weiss Ratings recommends that seniors seriously consider returning to Medicare while buying a good Medigap policy. However, consumers should buy only those benefits they truly need and shop around carefully to avoid overpricing, which is still common in the industry.

Weiss issues safety ratings on more than 16,000 financial institutions, including life and health insurers, Blue Cross Blue Shield plans, property and casualty insurers, banks, and brokers.